From Tire Review Staff & Wire Reports No sooner had the ink dried on the merger of Galaxy Tire & Wheel and Dynamic Tire Corp. than the combined company – GPX International Tire Corp. – sold a share of the company to private equity firm Sterling Investment Partners for a reported $41 million.
GPX was formed on Sept. 30 of this year when Dynamic Tire, based in of Toronto, and Galaxy, headquartered in Boston, merged their operations. GPX’s co-CEOs Bryan Ganz and Robert Sherkin will continue to own a majority of the company.
GPX said it initiated a search for a financial partner several months ago in order to be “able to both fund its ambitious capital expenditure program and take advantage of acquisition opportunities that may present themselves.”
GPX said it currently has a “number of production investment initiatives in China where it has long-standing relationships. These investments, if successful, would significantly augment GPX’s current manufacturing capabilities. In addition, GPX is in the process of doubling the size of its production facility in Europe and expanding the range of products produced in the facility and is also exploring several acquisition opportunities.”
M. William Macey, a Sterling managing partner noted, “A key reason GPX has sought a private equity partner is its desire to be a leading player in the developing consolidation of the specialty tire market. Management has identified significant, near-term acquisition opportunities. We look forward to working in partnership with management to continue to grow the business.”
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