Sales of tires | Groupe Touchette takes a big bite out of Canada

Groupe Touchette is consolidating the country’s tire distribution market by acquiring the Canadian operations of American Tire Distributors (ATD), the Quebec company’s largest acquisition, whose sales will surpass the $1 billion mark.

Posted at 12:03 p.m

Julian Arsenal

Julian Arsenal
The press

While the company has taken several bites to grow since its inception more than 40 years ago, the deal announced on Wednesday, which is subject to approval by Canada’s competition bureau, is special, according to David Giguère, its vice president. President of Marketing and Merchandising.

“We’ve made some good acquisitions in eastern Canada, for example, but this is the first time this is a transaction that has coast-to-coast impact,” he says in an interview with The press. That’s no small feat for a company that’s sprung up on the corner of Saint-Laurent Boulevard. »

As this is a transaction between two private companies, the amount was not disclosed.

Based in North Carolina, ATD is a leading supplier to the independent tire market. Its Canadian subsidiary, National Tire Distributors (NTD), has 24 distribution centers in Canada.

Groupe Touchette is of similar size to NTD, whose Canadian headquarters are in Ontario. This group will have up to 1,600 employees, according to Mr. Giguère, and its annual revenue could approach 1.7 billion. It will operate around 40 warehouses across the country.

strings on his bow

The transaction will also diversify the operations of the Montréal-based Saint-Laurent company, which specializes in the distribution of tires to garages and car dealerships.

” She [NTD] have a wider range of products than we do,” emphasizes Mr. Giguère. They sell truck tires and farm equipment, which we don’t. »


PHOTO DOMINICK GRAVEL, THE PRESS

David Giguère is Vice President of Marketing and Merchandising at Groupe Touchette.

Groupe Touchette intends to retain all of NTD’s niches as well as its employees.

This is the second catch in two years for the Quebec company. Last year it bought the retail and distribution activities of Pneus Chartrand.

According to Mr Giguère, there have been exchanges with NTD and its owner “for several years”. Groupe Touchette was contacted to see if they were interested in ATD’s Canadian division. The Quebec company could be a little less active in terms of acquisitions given the forthcoming integration work.

“The risk with acquisitions is making them and not digesting them well,” says Mr. Giguère. When we operated Atlas Tire Wholesale in Ontario [en 2018], we took our time. We take the time to make things right. »

Groupe Touchette expects the transaction to close in the fourth quarter following review by the competition authority. The group’s headquarters will remain in Montreal. NTD’s corporate headquarters in Burlington, Ontario will continue to operate as the “National Support Center”.

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  • 1979
    Groupe Touchette was founded in 1979 with a mechanical center in Montreal.

    touching group

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