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American Tire Distributers Expands its Reach In Canada

April 03, 2013

American Tire Distributors Holdings Inc. (ATD) announced that an agreement has been reached whereby TriCan Tire Distributors Inc. (TriCan), its wholly owned subsidiary, entered into an agreement to purchase all outstanding shares of Regional Tire Distributors Inc. (RTD Ontario). ATD expects the transaction to close by the end of April 2013. The acquisition will significantly expand ATD’s presence in the Ontario and Atlantic Provinces of Canada. ATD entered the Canadian market in November 2012 by purchasing TriCan.

RTD Ontario operates five distribution centers in Ontario and four distribution centers in the Atlantic Provinces. The company has grown from two distribution centers in 2008 to its nine distribution centers today. RTD Ontario services approximately 3,100 customers and is based in Burlington, Ontario.

Following the close of the acquisition, ATD will continue to run its Canadian operation as a stand-alone business unit. Mike Kustra, currently President of RTD Ontario, will assume the role of President over the combined RTD/TriCan operation. Chris Fletcher, currently President of TriCan Tire Distributors, will assume the role of Non-executive Chairman of the combined operation.

ATD and its subsidiaries plan to begin expanding their Canadian distribution centers in 2013 to support a broader product screen offering to customers. ATD and its subsidiaries also plan to add several new distribution centers across Canada by opening Greenfield locations and potentially acquiring other Canadian distributors.

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