In one of the largest acquisitions in recent memory, American Tire Distributors Inc. (ATD) has acquired Simi Valley, Calif.-based AM-PAC Tire Distributors Inc./Tire Pros from Itochu Corp. for an undisclosed amount.
The acquisition gives ATD an additional 24 distribution centers in 10 states. It also gives ATD 40 retail stores operating under AM-PAC's Tire Pros banner. In addition, as part of the deal, ATD has acquired AM-PAC's Tire Pros franchise operation, which has 294 franchisees.
"Significant geographic overlap between ATD and AM-PAC, combined with the companies' complementary brand and product offerings, will significantly strengthen ATD's positions in markets it currently serves," say ATD officials.
AM-PAC, according to its Web site, has distribution centers in Alabama, Arkansas, Arizona, California, Georgia, Illinois, Missouri, Mississippi, Tennessee and Texas, including major metropolitan areas like Phoenix, Memphis, Houston and Nashville.
The acquisition also "will allow ATD to expand its servicing area into St. Louis and western Texas." (AM-PAC has more than 25 retail stores in the St. Louis, Mo., area.)
"By combining the resources of these two organizations, ATD will be better positioned to service our customers," says ATD Chairman and CEO Dick Johnson. "We will have an unmatched depth and breadth of product, a strong offering of dealer marketing programs, and a distribution network that is without equal in our industry."
Regarding AM-PAC personnel, ATD has "the highest regard for the quality and commitment of AM-PAC team members. We believe their commitment to customer service and program-based marketing strategy makes this acquisition a perfect strategic fit for ATD."
Tokyo, Japan-based Itochu Corp. had owned Am-Pac since 1999.
