Hercules Acquired by FdG

(Akron/Tire Review) Hercules Tires & Rubber Co has officially announced that its senior management has “partnered” with private equity firm FdG Associates to acquire the Findlay, Ohio-based private brander and distributor. Hercules’ 33 dealer shareholders voted to sell their share to FdG

According to its statement, Hercules said the transaction was financed with equity from FdG’s second institutional fund, FdG Capital Partners II LP, and “will provide Hercules with the capital to further expand its Hercules branded private label program, solidify its industry position and capitalize on opportunities for continued growth and acquisitions.” Details of the deal were not disclosed.

Larry Seawell, Hercules vice president and COO, was elevated to president and COO. Craig Anderson, Hercules’ long-time president and CEO, remains as CEO and vice chairman of the board. Steve Buck remains as general manager and vice president of Hercules’ tyre unit.

“This transaction presents a fantastic opportunity for Hercules, and is a logical next step in the growth of our company,” Anderson said. “Our partnership with FdG will provide Hercules the additional resources needed to allow us to further develop our product offering and distribution platforms worldwide, and strengthen our financial base.

“It will also allow Hercules to capitalise on growth and acquisition opportunities within the large and highly fragmented tyre distribution industry, which is projected to continue to expand at a strong pace,” he said.

“The strong relationships Hercules has developed with its worldwide customers and suppliers will remain unchanged,” he continued. “We will continue to focus on the private-label, nationally known independent tyre brands, and niche performance products for which our customers rely on us. Private brand dealer agreements covering Hercules and Merit brands will be honored and will remain in place, and additional dealers are being sought in open territories.”

Mark Hauser, FdG Associates’ managing director, said, “We are pleased to partner with Hercules’ management to acquire the business. This is consistent with our philosophy of partnering with strong management teams to execute their strategic plans. We look forward to working with management to solidify Hercules’ leadership position in the tyre industry and create additional opportunities for growth.”