Attending the meeting were senior corporate executives, division presidents and sales and marketing officials from Hercules’ USA, Canada and International divisions as well as managers from Miami-based Tire Distributor Inc., the independent tire wholesaler Hercules acquired in June 2006. Also on hand were executives from FdG Associates, the private equity firm that acquired Hercules Tire in May 2005.
The Findlay, Ohio-based private brander and distributor said it recorded record-setting sales last year and reported sales growth in all three divisions – USA, Canada and International. New operations in Moncton, N.B.; Tampa and Medley, Fla.; and the company’s new Latin Sales office all contributed to the sales increase last year, officials said.
In fact, Hercules Tire has reported consistent growth for the last three years in its tire operations alone. “In 2004, gross sales were $342 million, and in 2005, gross sales were $382 million,” said Larry Seawell, president and CEO. “In 2006, gross sales were $444 million. We increased revenues by $100 million within two years.”
For 2007, Hercules officials expect revenues to exceed $500 million due to key strategic plans, which include the addition of two to three distribution warehouses in North America; expanded warehousing in China; several new product announcements for the Hercules, Merit, Super Express and Ironman brands; continuing same-store sales growth in North America; and the addition of key personnel to marketing, purchasing, systems accounting and finance departments.
Seawell also said the private brander and distributor plans to open six additional branches over the next two to three years.
As the ranks continue to thin among private branders, Hercules has grown stronger, and Seawell credits much of the company’s success to “a strategic group of suppliers, employees and a strong strategic plan. We are sharing logistics operations and suppliers on an international basis.”
For Hercules Tire, cooperation and one unifying voice among its three divisions and all of its supplier and partners worldwide spells future success. “We are stronger together,” Seawell said.
