K&M Tire Inc. has acquired and will run Point S USA's operations in Denver, Colo., including a 41,000-square-foot Point S distribution center.
K&M Tire will retain all Point S employees and service Point S members as its primary distributor. Point S will use K&M Tire as its primary source of tires in the Colorado markets.
“This partnership is a great way to connect the independent tire dealers of Point S with our strong footprint distribution centers in the Midwest, Central, Southwest and Northeastern portions of the United States while allowing us to continue to expand westward to service our growing needs for regional distribution in Colorado, Nebraska and Kansas,” says Cheryl Gossard, president of K&M Tire.
“We’re very 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.”
The story behind the partnership began with Point S’s intention to “optimize its Memphis distribution center,” according to Point S officials.
The 120,000-square-foot facility was opened in 2022 and links to the Point S distribution network serving Point S retail stores across 32 states.
The Memphis distribution center is “much better positioned to service some of the larger dealers, previously served out of Denver,” according to Point S officials.
“Our partnership with K&M Tire is a strategic move that will enhance our focus on our member-first model,” says Walter Lybeck, CEO of Point S USA.
“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."
The partnership between Point S USA and K&M Tire Inc. will close along with the asset purchase agreement for Point S USA’s Denver assets on Dec. 2, 2023.
