K&M to acquire Point S warehouse operations in Denver

PORTLAND, Ore. — Two top tire distributors have combined forces to bolster tire dealers in Colorado.

K&M Tire Inc. has reached an agreement to acquire Point S USA's distribution operations in Colorado, including a 41,000 sq.-ft. warehouse in Denver. In addition, K&M will serve as the primary distributor for Point S members serviced by the Colorado facility.

As part of the agreement, K&M will retain all Point S employees in the Colorado market.

Terms of the agreement were not disclosed. The partnership agreement, as well as the purchase of the facility, is expected to close Dec. 2.

The acquisition pushes K&M, the family-owned distributor based in Delphos, Ohio, farther west in its U.S. footprint. Currently, K&M's western-most distribution facilities are in Bismark, N.D.; Rapid City, S.D.; North Platte, Neb.; Liberal, Kansas; and Carlsbad, N.M.

Portland-based Point S said the move "marks a significant milestone" in the cooperative's mission to enhance its distribution model, while providing members "consistent access to products and services while maintaining control of its capital."

K&M President Cheryl Gossard called the partnership "a great way to connect the independent tire dealers of Point S with our strong footprint of distribution centers in the Midwest, Central, Southwest and Northeastern portions of the U.S., while allowing us to continue to expand westward to service our growing needs for regional distribution in Colorado, Nebraska and Kansas."

She said K&M, founded in 1970 by Gossard's father, Ken Langhals, is "excited about taking on our newest customers in Denver and showing them our exemplary distribution and competitive capabilities. It also positions us well as a partner for future Point S stores with their ambitions to grow nationwide."

Point S CEO Walter Lybeck called the partnership "a strategic move that will enhance our focus on our member-first model."

He said it allows the cooperative to work with a wholesaler "with common family values, granting our members access to strategically placed distribution locations that complement our existing warehouses. By joining forces with K&M Tire, we can maximize our distribution capabilities, creating a more cost-effective and efficient solution for our members currently being served out of Denver."

Point S said the partnership grew out of its work to optimize its distribution center in Memphis, Tenn. The facility, strategically placed to serve a growing number of Point S dealers in the region, opened in 2022. The 120,000 sq.-ft. warehouse serves Point S retail stores across 32 states and according to Point S, is positioned to service some larger dealers, previously served out of Denver.

Point S said it identified K&M as an ideal partner after focusing on its commitment to Point S stores. The company said it the move allows it "to deliver and service Point S stores under a secondary delivery relationship, offering the same pricing and delivery standards."