Hercules Tire & Rubber to Acquire Wholesaler

The Hercules Tire & Rubber Company (Hercules), the marketer and distributor of private label and branded tyres, announced that it is acquiring Tire Distributor Inc., USA (TDI), a tyre wholesaler headquartered near Miami, Florida. Terms of the transaction were not disclosed. “We are very pleased to bring TDI and its management team and employees into the Hercules family,” said Larry Seawell, president and chief executive officer of Hercules. Seawell added, “We had targeted the Southeast region for expansion given the opportunities for growth in that market, and it was important for us to find a strong operating platform in Florida that would allow us to expand our sales and distribution capabilities throughout the Southeast and into Latin America.”

TDI currently has two distribution locations in Florida which generated sales of approximately $30 million in 2005, and Hercules plans to open three more distribution facilities in the Southeast over the next 18 to 24 months. As part of the transaction, the two owners of TDI, Christopher “Rocky” McDonough and Tony Lugioyo, are joining the senior management team of Hercules and will serve as general managers of the Southeast division of Hercules.

“We value the approach to partnership that Hercules has demonstrated, and we are excited about the additional product offerings and resources they offer us,” said Rocky McDonough. “At the same time, this transaction allows us to keep our employees, who have been integral to our historic growth. Teaming up with Hercules will give us the ability to become the dominant player in the Florida tire market.”