VERNON, British Columbia — Kal Tire, already one of North America's largest commercial dealerships and retreaders, is about to get even bigger with a pending deal to buy 15 GCR Tires & Service stores, two retread plants and one off-the-road (OTR) tire repair shop in eastern Canada from Bridgestone Canada Inc.
The deal will allow Kal Tire to expand its footprint to include locations in eastern Canada, thereby enhancing its ability to serve more consumer, commercial and mining customers throughout Canada, the companies said.
Financial terms of the deal, expected to close in the fourth quarter, are not being disclosed.
The GCR stores and retread plants being purchased by Kal Tire are located in Newfoundland, Nova Scotia, New Brunswick, Ontario and Quebec. They serve consumer customers, along with the commercial trucking, OTR, agriculture and mining industries, the companies said.
All 125 GCR employees are expected to join Kal Tire upon completion of the transaction.
The deal will enhance Kal Tire's network of 250-plus retail and commercial stores across Canada, predominantly in western Canada but stretching as far east as Ontario. Kal Tire considers itself an international leader in mining tire service and supply, servicing more than 150 mine sites across five continents.
"At Kal Tire, we are driven to provide customers with best-in-class tires and service. To achieve this, we need to continue to strengthen our network of locations that are staffed by experts in the tire and service industry," Kal Tire President Robert Foord said.
"The purchase of these GCR locations allows us to expand our footprint across Canada, while also bringing more knowledge and expertise to our team."
Scott Damon, chief operating officer, Bridgestone Americas, said the sale "is a positive step for GCR employees and customers who have a bright future ahead as part of the Kal Tire organization.
"As Bridgestone and Kal Tire evolve for the future, this transaction will enable strategic growth for both companies. We look forward to building on our longstanding partnership with Kal Tire to drive additional growth in Canada for Bridgestone's products, brands and mobility solutions."
The deal continues a series of divestments of GCR assets over the past few years. Nonetheless Bridgestone Americas will continue to operate 59 GCR stores and 13 GCR retread plants in the western U.S. At its height, the GCR network comprised over 200 sales locations throughout the U.S. and Canada.
Bridgestone said GCR remains an integral part of its commercial distribution strategy in the U.S. and is committed to serving commercial customers in a best-in-class manner, while continuing to drive growth and support future mobility solutions.
The GCR stores included in the sale will conduct business separately from Kal Tire until the transaction closes. Bridgestone and Kal Tire said they remain focused on meeting the needs of their consumer and commercial customers and have developed a strong plan to ensure a seamless transition for all affected GCR employees and customers.
Other recent GCR divestments include:
- 19 GCR stores in nine upper Midwest and Great Plains states in January 2020 to Pomp's Tire Service Inc.;
- 10 GCR Tire stores and one retread plant in Florida and Georgia to Boulevard Tire Center of Deland, Fla.;
- 13 GCR Tires & Service stores and three retread plants in North Carolina, South Carolina and Virginia to McCarthy Tire Service of Wilkes-Barre, Pa.;
- 46 GCR stores and six retread plants in the southern U.S. to Southern Tire Mart of Columbia, Miss.; and
- Four GCR service locations and two retread plants to Parkhouse Tire Inc. of Bell Gardens, Calif.