Groupe Touchette has entered into a definitive agreement to acquire American Tire Distributors’ Canadian subsidiary, National Tire Distributors (NTD). Financial terms of the pending transaction were not disclosed.
For Groupe Touchette, the deal would mean increased offering capacity and more choices for Canadian customers as, post-transaction, Groupe Touchette would serve all major manufacturers and supply customers across Canada.
The agreement calls for the companies to enter into a commercial relationship under which American Tire Distributors would supply the combined Canadian company with its Hercules and Ironman brand tires as well as make its analytics software and productivity tools available to Groupe Touchette’s network.
The combined business would continue to be headquartered in Montreal and would maintain a national support center in Burlington, Ontario in addition to regional offices across Canada.
Groupe Touchette is one of the largest Canadian-owned tire distributors. The company specializes in value-added tire distribution services. Groupe Touchette has more than 1,000 employees and is present across Canada with more than two dozen distribution centers.
Groupe Touchette services car manufacturers, car dealerships and independent tire retailers through its TireLink and DT Tire Banners. The company also serves Canadian consumers under the retail banners Tireland/Ici Pneu, Tire Partners/Pneu Solutions, Pneus Chartrand Mecanique, Pneus Express Mecanique and Touchette Motorsport.
The transaction is expected to close in the fourth quarter of 2022, subject to the satisfaction of customary closing conditions, including Canadian regulatory clearance.
Jefferies Group is the financial adviser to Groupe Touchette.