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."