Groupe Touchette to acquire Canadian unit of U.S. tire distributor


Groupe Touchette, the largest Canadian-owned tire distributor, struck a deal to acquire American Tire Distributors’ assets in the country, a move that may roughly double its annual sales.

Montreal-based Groupe Touchette will serve “all major manufacturers and supply customers across Canada” after the deal, the company said in a statement Wednesday. The firm’s revenue will rise from $800 million to between $1.4 billion and $1.7 billion, according to a person familiar with the matter.

The two private companies, which didn’t release any financial details about the transaction, will enter into a contract under which American Tire will supply Groupe Touchette with its proprietary Hercules and Ironman brand tires. The transaction is expected to close in the fourth quarter, subject to regulatory approval.

Groupe Touchette increased its position in Canada with two important acquisitions in recent years, Pneus Chartrand Distribution Inc. in 2021 and Atlas Tire Wholesale Inc. in 2018. It now employs more than 1,000 workers in more than two dozen distribution centers. Huntersville, North Carolina-based American Tire Distributors operates 26 distribution centers and has about 600 employees in Canada.

Through its TireLink and DT Tire Banners, Groupe Touchette serves auto manufacturers, dealerships and independent tire retailers. The company also serves Canadian consumers under the retail banners Tireland/Ici Pneu, Tire Partners/Pneu Solutions, Pneus Chartrand Mécanique, Pneus Express Mécanique and Touchette Motorsport.



Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

Shopping Cart