MONTREAL — Montreal-based wholesaler Groupe Touchette Inc. has struck a deal to buy fellow Quebec tire dealer Pneus Chartrand Distribution Inc., which operates both wholesale and retail businesses throughout the province.
The acquisition includes two wholesale distribution centers, seven retail tire and auto service locations under the Pneus Chartrand Mécanique Inc. identity and a real estate company, Groupe Immobilier Chartrand, Groupe Touchette said.
The deal, for which financial terms are not being disclosed, is set to close July 1.
Group Touchette said the deal allows it to consolidate its "leading position" in Quebec by asserting itself even more strongly as a solid and credible partner to independent retailers and other distribution networks seeking for a turnkey tire supplier solution.
Nicolas Touchette, co-owner and CEO of Groupe Touchette, called Pneus Chartrand a "major player" in Quebec — particularly in the Montreal metropolitan area — and said the dealership thrives "from a solid reputation and whose business model is both complementary and compatible with our own.
"This [deal] confirms that we are more determined than ever to pursue our growth through strategic distribution and retail channels."
Pneus Chartrand has been in business in Quebec since 1949, when Laurier Chartrand opened a neighborhood gas station and an automobile maintenance workshop on Longueuil. His son Robert Chartrand took over the business in 1975 and branched into tire sales and service to complement the automotive mechanics side of the business.
The Longueuil-based company branched into tire wholesaling in the latter half of the 1990s and grew the retail business to seven locations over time through acquisitions and new store openings.
Mr. Chartrand, owner and president of Pneus Chartrand, called Groupe Touchette the best tire distribution company in Canada and said it is positioned, "thanks to its exhaustive experience in distribution and retail, to ensure the continuity and development of what we have built over the years since 1949.
"Throughout our discussions, I have been impressed by their commitment to our employees, customers, and partners. I am convinced that Groupe Touchette Inc. has what it takes to ensure a prosperous future."
Frédéric Bouthillier, co-owner and COO of Groupe Touchette, said: "Customers will benefit from the combination of our national and regional strengths. They now have access to greater purchasing power and inventory range that offers advantages such as better product availability and exclusive products.
"The complementarity of our two companies will quickly capitalize on their strengths as well as on the commitment, experience, and expertise of their employees."
Group Touchette, which calls itself the largest Canadian-owned tire distributor, did not disclose Pneus Chartrand's annual sales or employment.
This is Groupe Touchette's second major acquisition in the past three years. In late 2018 it acquired Atlas Tire Wholesale Inc., which operated three distribution centers and had a fourth under construction at that time.
Groupe Touchette operates 30 distribution centers across Canada, from Dartmouth, Nova Scotia, to Vancouver, British Columbia, distributing 20-plus tire brands.