American Tire Distributors has acquired Am-Pac Tire for an enterprise value of US$75m.
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In a statement American Tire, which is owned by Investcorp, said the acquisition will enable it to offer a wider product range and distribution network to its dealer customers.
“This acquisition reflects Investcorp’s strategy of making add-on investments to its portfolio companies to increase value, especially during the current economic conditions, which are generating interesting buying opportunities,” the statement said.
American Tire, which was acquired by Investcorp and its investors in 2005, is the leading distributor of replacement tires in the US.
Am-Pac Tire has its headquarters in Simi Valley, California and generates approximately $300m in annual revenues.
“It is an attractive acquisition due to its complementary geographic overlap, brand and product range that will significantly strengthen American Tire’s position in existing markets, as well as enabling it to expand into St. Louis and western Texas,” the statement said.
