WILKES-BARRE, Pa. — McCarthy Tire Service has purchased Classic Tire Service Inc., a single-outlet, farm-oriented dealership in Barclay, Md., from owners Milton and Dawn Karbaum.
Classic Tire Service offers farm tire sales and service to customers in the largely agricultural region of Maryland's Eastern Shore. All Classic Tire employees will be staying on with McCarthy Tire, including Milton Karbaum, who will continue to manage the Barclay location, McCarthy Tire said.
Financial terms of the deal were not disclosed.
"Milton is an inspiration. He started his company from scratch and grew it into a successful business serving an important market," McCarthy Tire President John McCarthy Jr. said.
"We've been in the tire business for over 40 years and now we're excited to turn the reigns over to a company, that I believe, can help us to grow in our community and to provide even better service to our customers," Milton Karbaum said.
"We thank our vendors for their great friendship and service and our loyal customers for trusting us with their farming needs. We look forward to providing our customers with the same quality of service and increased product availability, by teaming up with McCarthy Tire."
The acquisition extends the McCarthy Tire footprint in a strategic location to serve the farming community in the Delmarva Peninsula more effectively.
The acquisition of Classic Tire is McCarthy Tire's fourth in the past year. Others were:
- Piedmont Truck Tires Inc., a Greensboro, N.C.-based dealership with 10 service outlets in North Carolina, South Carolina and Tennessee and a retread plant in North Carolina;
- LS Truck Tire Repair Inc., a Philadelphia-based dealership with five commercial servicing locations in the greater Philadelphia market, including two in New Jersey; and
- Tire Sales L.L.C., a Philadelphia-based business unit of TSS Group L.L.C., a mining and aggregates industry servicing company.
The acquisitions will boost McCarthy Tire's market coverage to 76 commercial service locations and 10 retread plants and will boost annual sales by roughly $40 million to $50 million, based on available information. The dealership already is No. 5 among its peers, with commercial-related sales of $437 million.
