MONTREAL and MISSISSAUGA, ON, Nov. 8, 2018 /CNW Telbec/ - Groupe Touchette Inc., one of Canada's largest tire distributors, has taken a major step toward completing its Canadian market coverage by acquiring Atlas Tire Wholesale Inc.—a recognized leader that boasts a strong presence in Ontario. The transaction was announced this morning to both companies' employees and clients. No reorganization is planned, apart from a few adjustments that may be necessary, and the two companies will gradually integrate the Ontario market over the next year.
The acquisition of Atlas Tire Wholesale Inc. enables Groupe Touchette to expand its operations, mostly in Ontario. Atlas Tire Wholesale Inc. is a leading tire distributor to car dealerships and independent tire retailers and it operates three distribution centres in the Greater Toronto Area, namely in Mississauga, Scarborough and Vaughan, and a fourth one, also in Vaughan, of over 182,000 sq. ft. to be in operation in the spring of 2019, which will become Groupe Touchette's largest facility. Atlas Tire Wholesale Inc. also has operations in Alberta, namely in Edmonton and Calgary, as well as in Delta, British Columbia. Up to now, Groupe Touchette had been distributing tires in the Ontario market under DT Tire and TireLink from five distribution centres—including one in Brampton to serve the Greater Toronto Area.
Groupe Touchette is, therefore, pursuing the implementation of its business plan, which is aimed at accelerating its growth in the Canadian tire distribution market. With the acquisition of Atlas Tire Wholesale Inc., Groupe Touchette forecasts sales revenues in the range of $550 to $650 million.
Following the opening of new tire distribution centres in Halifax (NS) and Quebec City (Qc), the relocation of its centre in Regina (SK), the expansion of another one in Vancouver (BC) and the addition of the seven Atlas Tire Wholesale Inc. facilities—including the most recent one in Vaughan —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. 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. 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."
– Nicolas Touchette, Owner and CEO, Groupe Touchette Inc.
"Atlas Tire Wholesale Inc. benefits from well-established and respected brand equity as well as solid market expertise. 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."
– Frédéric Bouthillier, Owner and COO, Groupe Touchette Inc.
"While Atlas has never been for sale, we have had a few unsolicited approaches in recent years. The approach from Groupe Touchette was interesting and, as we listened, we felt that they would be the right partner to ensure the continuity and development of what we have built over the past 28 years. Throughout our discussions, I was impressed by their commitment toward our employees, clients and partners. I am convinced that Groupe Touchette has what it takes to win in the Ontario market and become the leader in Canada."
– Peter-James Gregory, President, Atlas Tire Wholesale Inc.
About Groupe Touchette Inc.
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.
In addition to the services provided to car manufacturers, authorized car dealerships and independent tire retailers, operating under TireLink, DT Tire and now Atlas Tire Wholesale Inc., Groupe Touchette Inc. also serves consumers under the Tireland/IciPneu and TirePartners/Pneu Solutions. | www.groupetouchette.com
SOURCE Groupe Touchette Inc.
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