American Tire Distributors entered into an agreement and plan of merger with Hercules Tire & Rubber Co. according to an 8-K form filed with the Securities Exchange Commission on Jan. 24.
“Hercules is a well-run company with an outstanding reputation in the industry,” said William “Bill” Berry, president and CEO of ATD, in a statement from the company. “Joining forces with the Hercules team is a very positive step for American Tire Distributors.”
According to the 8-K filing ATD plans to buy the tiremaker for $310 million with the deal closing by the end of January. An additional $10 million could be paid “contingent upon the occurrence of certain performance-related and other post-closing events.”
The deal is expected to be funded by a combination of issuance of additional debt, equity contributors from ATD’s indirect parent, and borrowing under ATD’s credit, the filing states.
To see the full filing, click here
ATD operates 130 distribution centers across the U.S. and Canada. Hercules Tires operates four divisions- Hercules Tire USA, Hercules Tire Canada, Tire Dealer’s Warehouse, and Hercules Tire International.
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