Groupe Touchette Inc., one of Canada’s largest tire distributors, has acquired Atlas Tire Wholesale Inc.
The company says the deal constitutes a major step in its plans to expand its Canadian market coverage. Atlas Tire boasts a strong presence in Ontario.
No reorganization is planned, apart from a few adjustments. The two companies will gradually integrate the Ontario market over the next year.
“Atlas Tire Wholesale Inc. is a respected major player in Ontario, making it the ideal partner for Groupe Touchette to strengthen its position as a key player in Canada and, more specifically, in Ontario,” said Nicolas Touchette, owner and CEO of Groupe Touchette Inc. “In addition to providing an opportunity for increased market coverage, we realized that there was a natural fit and no significant overlap between both companies. With the acquisition of Atlas Tire Wholesale Inc., we are taking an important step in our expansion plan by ensuring a strong presence in Canada’s largest market.”
Atlas Tire Wholesale Inc. was a leading tire distributor to car dealerships and independent tire retailers, operating three distribution centres in the Greater Toronto Area. A fourth DC, of over 182,000 sq. ft., will be in operation in the spring of 2019. It will become Groupe Touchette’s largest facility.
Atlas Tire Wholesale Inc. also has operations in Edmonton and Calgary, as well as in Delta, B.C.
With the acquisition of Atlas Tire Wholesale Inc., Groupe Touchette forecasts sales revenues in the range of $550 to $650 million per year.
Following the opening of new tire distribution centres in Halifax and Quebec City, the relocation of its centre in Regina, the expansion of another one in Vancouver, and the addition of the seven Atlas Tire Wholesale Inc. facilities, Groupe Touchette now operates a total of 35 distribution centres nationwide.
The transaction brings a 25% increase in total storage capacity across the country. In Ontario alone, distribution centres total 550,000 sq. ft.
“Atlas Tire Wholesale Inc. benefits from well-established and respected brand equity as well as solid market expertise,” said Frédéric Bouthillier, owner and COO of Groupe Touchette Inc. “We will take the time over the next few months to learn, study, listen and get to know Atlas Tire Wholesale Inc.’s employees and clients. Through this transaction, thanks to the addition of dedicated and qualified employees and through a strong clients network, Groupe Touchette just got better by significantly improving its coverage of the Ontario and Canadian markets. This will be an exciting new adventure that will lead us to unprecedented highs and unparalleled achievements.”
Groupe Touchette Inc. is the largest Canadian owned tire distributor. Recognized for nearly 40 years for its expertise and superior service levels to manufacturers, dealers and independent clients, the company specializes in value-added tire distribution services. With operations spanning from coast to coast, Groupe Touchette today employs more than 600 people.