Tire Factory acquires Nokian US wholesale facility

As of May 23 the wholesale operations run by Nokian Tyres in the US city of Denver, Colorado will be taken over by Tire Factory, a group of independent tyre dealers that operate more than 200 locations in 15 states. The Meadow Creek facility in Denver will joint Tire Factory distribution centres operating in Portland, Oregon and Salt Lake City, Utah.

“The acquisition of this facility completes one of our strategic goals for expansion in the Southwestern United States,” commented Tire Factory chairman Chris Cornelius. “Our new Denver facility will make Tire Factory’s programmes and buying power more accessible to independent tyre dealers who want to become part of the Nation’s best member-owned tyre buying and marketing co-op.”

“Nokian Tyres Inc. has a strong partnership with Tire Factory; one that is based on shared goals for growth in the Northwestern US,” added Jari Lepisto, general manager of Nokian North America. “When Tire Factory expressed an interest in acquiring our operations in Denver, we determined that having them do so was an excellent fit with our total growth plan in that territory, and we were pleased to enter into this agreement.”

According to Tire Factory CEO John Kreidel, “adding Denver to our Portland, Oregon and Salt Lake City, Utah facilities gives us more efficient distribution in Western United States. More efficient distribution helps keep transportation costs lower for our members, and allows them to grow in a marketplace that daily is more competitive. Existing members will benefit from the increased buying power, increased volume, related programmes and profitability that come from being a larger tyre retailer.”