Commercial pneumatics, retreading sectors on solid foundations

There is a sort of blockage behind the STM for second place.

Best One Tire & Service LLC claimed second place this year with 20% growth from 2019 to $ 530 million, overtaking Snider Fleet Solutions with estimated sales of $ 525 million and Pomp’s Tire Service Inc. with 500. millions of dollars.

Among the companies that rose in the rankings was Bauer Built Inc., which entered the Top 10 with sales of $ 272 million last year. Its growth was boosted by its acquisition of Allied Oil at the end of 2019.

The commercial / retreading sector has seen its fair share of M&A activity over the past year.

• Long-time Goodyear Affiliate Purcell tire And Rubber Co. acquired C quality tireo. of Salt Lake City, and joined the Michelin commercial services network (MCSN) and is converting its Phoenix and Potosi, Missouri, retread plants to the Michelin Retread Technology network.

The deal, which closed in December, added Quality Tire’s nine outlets in Colorado, Idaho, Montana and Utah to the Purcell Tire outlet network, expanding it to 65 in 15 states.

The merged company is expected to generate more than $ 275 million in commercial revenue on an annualized basis,

The deal included three retread plants – a Michelin Retread Technologies plant in Hudson, Colo., And Oliver Rubber plants in Billings, Mt., and Salt Lake City – which was a catalyst for Purcell’s decision to converting its existing retreading facilities in Potosi, Mo., and Phoenix to the Goodyear System MRTI system that it had used for decades and became part of the Michelin sales service network.

With 2020 revenue of $ 210 million, Purcell ranks 11th in this year’s ranking of North American commercial dealers. It is also # 10 among truck tire retreaders and # 1 OTR tire retreader.

With commercial sales of $ 68 million in 2019, Quality Tire was among the top 30 commercial dealers in North America.

Border tire from El Paso, Texas, purchased Canyon Tire Sale, a 40-year-old dealer based in Corona, Calif., with five outlets and a retread plant in Southern California.

The deal doubled Border Tire’s presence in California and represents up to $ 45 million in potential additional annual sales. Founded in 1990 by the Leinen family, Canyon Tire operates truck tire sales / service outlets in Corona (two locations), Fontana, Southgate and San Diego

Like Border Tire, Canyon was part of the sales and retreading networks of the Michelin sales network.

The deal comes two years after Border Tire acquired five TCi Tire Centers and an MRT retread plant in California from Michelin North America Inc. The deal will make Border Tire the largest California MRT dealer.

“Our goal has always been to grow and make strategic acquisitions that extend our service footprint to our loyal customer base,” said then-vice president of Border Tire, David Shipp. Border Tire, based in El Paso, is a division of Border International, a new used truck dealership with bases in Las Cruces and EL Paso.

Based on the company’s 2020 sales of $ 84.5 million, Border Tire is the 24th largest independent commercial tire dealer in North America, based on Tire company calculations. The addition of Canyon Tire’s revenue is expected to push Border Tire potentially into the top 15.

Tire Truck Service Centers (STTC) acquired the business assets of Highland Tires And Service, encompassing sales / service sites in Allentown, Everett and York, Pa., and a Michelin Retread Technologies (MRT) retread plant in Carlisle, Pa.

The addition of these three sites “aligns with our growth strategy and gives us the opportunity to offer our advanced services to more customers in the fleet,” said at the time the President and Chief Executive Officer. STTC executive, Walt Dealtrey.

Bethlehem, PA-based STTC’s network has expanded to 53 commercial / mechanical service sites and five retread plants (four MRTs and one Oliver system) in eight mid-Atlantic and north states -est, ranging from Virginia to Massachusetts.

While this does not fit into the M&A niche, Commercial Tire Service, a commercial and retreader dealership with eight outlets in the Chicago metro area, aligned more closely with Goodyear last year to help expand Goodyear’s presence in the Midwest.

The alignment has enabled Goodyear to expand its Goodyear Commercial Tire Service network into a large and rapidly growing urban market, “where fleets feel special pressure to stay on the road and provide needed products,” said Dave Beasley, Vice President, North America Commercial. at the time.

The CTS locations complement seven Goodyear Commercial Tire Service outlets already in the Chicago area. CTSs are primarily north and west of Chicago, while Goodyear’s are further south and east.

In New England, Pete’s Tire Barns is building a 12,000 square foot building. in South Windsor, Connecticut, for a Bandag retread plant that owner Peter Gerry has said he hopes to be operational by next fall.

The new plant will be the third for Pete’s Tire Barns, which ranks 46th among the largest truck tire retreaders in North America with two plants that produced about 300 units per day last year.

The new plant will be a four-chamber configuration, Mr. Gerry said, equivalent to 200 tires per day at full capacity. The opening was delayed to some extent due to delays in obtaining the equipment, a pandemic-related situation and its effects on manufacturing in general.

A number of key commercial merchants took advantage of the federal government’s Payroll Protection Program (P3) funding last year to help keep their workforce employed during and after the downturn in business. at the start of the pandemic.

According to information compiled by the Small Business Administration, 193 companies that classified themselves as “retreaders” received PPP loans, as well as 575 companies that self-identified as “tire dealers:

In the “retreader” category, companies received between $ 142 million and $ 246 million, making each loan worth between $ 738,000 and $ 1.3 million.

In the dealer category, the amount was between $ 599 million and just over $ 1 billion, which gives an average for each company of between $ 103,850 and $ 186,643.

Southern Tire Mart received the maximum loan of $ 5-10 million. Two others are featured in the $ 5 million category: Custom Bandag Inc. of Linden, NJ; and Border Recapping LLC of El Paso, Texas.

Earl W. Colvard Inc. (Boulevard Tire) of Deland, Fla., Among those who have received loans in the range of $ 5 million to $ 10 million; Commercial Tire Inc. of Meridien, Idaho; and T&W Tire LLC of Oklahoma City.

McCarthy Tire Service Inc. of Wilkes-Barre, Pa., Is reported to have received five separate loans totaling at least $ 8 million and up to $ 19 million.

From a broader perspective, the nation’s major truck stop operators continue to expand their networks, including new locations with valued tire and tire maintenance services on-site.

Love’s Travel Stops & Country Stores is in the process of opening as many as 50 travel stops in 2021, including at least 30 with Love’s Truck Care or Speedco preventive maintenance and tire services on site.

The expansion plan builds on a “tough” 2020, when the Oklahoma City-based company opened 38 truck service spots with more than 3,000 parking spots and donated millions of dollars to fight COVID-19, injustice and poverty and to help sick and injured children. .

Love’s also commissioned its sixth retread plant in Milan, Tennessee last year.

Love’s travel stopover network has more than 540 locations in 41 states, including more than 400 with Speedco or Love’s Truck Care services on-site across more than 1,500 service bays. The company changed the name of its truck maintenance network at the end of 2020 to Love’s Truck Care from Love’s Truck Tire Care to reflect the evolving portfolio of preventive maintenance services available in its Travel Stops.

TravelCenters of America Inc., which operates 265 truck stops in 44 states, is increasingly turning to franchising to expand its brand and network across the country.

The company, which sells new tires, retreads and related maintenance services at 244 locations, sees “significant continued growth opportunities through the franchise.” The company has signed 18 franchise agreements since early 2019, is negotiating 19 additional agreements and has identified 80 other potential franchisees.

Franchised locations, however, tend to be smaller than corporate stores and do not have the full range of tire and / or maintenance services.

Boss Truck Shops Inc., which operates 47 Bosselman boss Stores in 23 states, began stocking Continental brand truck tires and participates in Conti’s TrukFix roadside assistance network.

Michelin North America noted that the addition of Purcell Tire to Michelin’s commercial service network extends the company’s seamless fleet service to more than 400 locations nationwide.

MCSN affiliates provide fleets with a comprehensive service package, including online reporting, Michelin ONCall emergency road service, Michelin Tire Care tire monitoring service, Michelin Mechanical Care trailer repair and preparation program and access to qualified technicians backed by rigorous certification and auditing standards.

Bridgestone’s GCR Tire network has stabilized, after several years of divestment, at 74 outlets in the United States and Canada. In the United States, the GCR network is concentrated in the Rocky Mountain and Pacific Coast states, while in Canada it is primarily located in the Atlantic provinces.

Goodyear’s company-run tire sales service network has 228 locations following the acquisition of Raben Tire in late 2019. Goodyear CTS also operates 33 retread plants and is considered the largest retreader in North America.


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