Investcorp completes $1.3 billion sale of American Tire Distributors

14 Jun 2010

Investcorp, the asset management firm specialising in alternative investments, today announced the completion of the sale of US portfolio company, American Tire Distributors.  ATD was acquired by Investcorp and its co-investors in 2005.

Mohammed Al-Shroogi, Investcorp’s President of Gulf business, said: “This sale of American Tire Distributors brings to a close a successful five year investment for Investcorp. With the management team, we have implemented a successful strategy that has strengthened ATD’s position as the leading distributor of replacement tires in the United States by rigorously applying our value enhancement model.  We have worked closely alongside the ATD management team and this investment has demonstrated Investcorp’s value enhancement model in action. We have taken ATD to the next stage of its development and this is the right time to exit and return capital to our investors.”

Based in Charlotte, USA, ATD distributes replacement tires to local, regional and national tire retailers. It is the US’s largest independent tire distributor with 83 distribution centres serving 37 states and has 60,000 customers.

ATD provides tire retailers with a range of services, including frequent and timely delivery of inventory, business support services, such as credit, training and access to consumer market data, administration of tire manufacturer affiliate programs, a leading online ordering and reporting system and a website that enables its tire retailer customers to participate in marketing of tires to customers through the internet.