Investcorp to Acquire American Tire Distributors

Investcorp, a global investment group, reached a definitive agreement today to acquire American Tire Distributors Inc. (ATD) from its majority shareholder, Charlesbank Capital Partners. Terms of the deal, which is expected to close in late March, were not announced. ATD is the largest independent tire distributor in the U.S., with 70 distribution centers in 35 states, servicing some 40,000 tire dealer locations across the country. Founded in 1935 as Heafner Tire Co., the company changed its name to ATD in 2002.

CHARLOTTE, NC — Investcorp, a global investment group, reached a definitive agreement today to acquire American Tire Distributors Inc. (ATD) from its majority shareholder, Charlesbank Capital Partners. Terms of the deal, which is expected to close in late March, were not announced.

ATD is the largest independent tire distributor in the U.S., with 70 distribution centers in 35 states, servicing some 40,000 tire dealer locations across the country. Founded in 1935 as Heafner Tire Co., the company changed its name to ATD in 2002.

Based in Charlotte, N.C., ATD says it is the only distributor to carry brands by the four top North American tire companies: Bridgestone/Firestone North American Tire, Goodyear Tire & Rubber Co., Michelin North America and Continental Tire North America. In addition, ATD distributes custom wheels, accessories and automotive service equipment.

ATD is also the largest distributor member of American Car Care Centers (ACCC), having joined the marketing group last fall after its purchased ACCC member Target Tire.

“American Tire Distributors holds a strong position in a fragmented, but growing replacement tire distribution market,” Steven Puccinelli, a managing director of Investcorp, said. “We look forward to partnering with Dick Johnson and his team to capture the growth opportunities available to the company and, just as importantly, to help its independent tire dealer customers grow their businesses.”

“We thank Charlesbank for the support they have provided the company, and welcome Investcorp as our new partner,” said ATD chairman and CEO Dick Johnson. “This transaction changes nothing in ATD’s strategic direction – the growth of our dealers’ businesses remains central to our success and growth. We aim to continue to improve our capabilities in distribution and customer service to achieve this basic strategic goal, and look forward to benefiting from Investcorp’s deep experience along the way.”

Investcorp is a global investment group with offices in New York, London and Bahrain, and specializes in corporate investment, real estate investment, asset management and technology investment. It was established in 1982 now manages total investments in alternative assets of approximately $8.6 billion.

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