American Tire Distributors Announces Investment by Ares Management Private Equity Fund, Now Equal Owners With TPG
HUNTERSVILLE, N.C.—(BUSINESS WIRE)—February 3, 2015 --American Tire Distributors, Inc. (“ATD”) announced today that a fund managed by the Private Equity Group of Ares Management, L.P. (NYSE:ARES) has entered into an agreement to acquire a significant stake in the company, resulting in equal ownership between Ares and current majority shareholder TPG. Terms of the transaction were not announced and closing is subject to certain conditions.
“This transaction is another significant milestone in ATD’s growth story, and we are proud now to have two very notable investors as our primary shareholders,” said Bill Berry, President and Chief Executive Officer of American Tire Distributors. “The company appreciates the guidance TPG has offered for the past five years, and we look forward to the added experience and expertise of Ares as we continue to expand as the premier tire distributor in North America.”
“We are pleased to be able to partner with TPG to continue to grow ATD, a market leader with a demonstrated track record and significant expansion opportunities ahead,” said David Kaplan, Co-Founder, Senior Partner, and Co-Head of the Private Equity Group of Ares Management. “The company fits with Ares’ longstanding private equity strategy of acquiring strong franchises with proven management teams and helping them realize their full potential.”
“We welcome the opportunity to partner with Ares and the strong management team at ATD,” said Jonathan Coslet, Chief Investment Officer at TPG. “We are pleased to offer our limited partners a significant return on their investment while allowing them to continue to participate in the growth of this best in class franchise.”
Bank of America Merrill Lynch, Goldman Sachs, and Deutsche Bank served as financial advisors and Ropes & Gray LLP served as legal counsel to ATD and TPG. Sullivan & Cromwell LLP served as legal counsel to Ares.
Certain statements in this press release are forward-looking statements. These statements involve a number of risks, uncertainties, and other factors including potential changes in market conditions that could cause actual results to differ materially.
About American Tire Distributors, Inc.
American Tire Distributors is one of the largest independent suppliers of tires to the North American replacement tire market. It operates more than 140 distribution centers, including 25 distribution centers in Canada, serving approximately 80,000 customers across the U.S. and Canada. The company offers an unsurpassed breadth and depth of inventory, frequent delivery and value-added services to tire and automotive service customers. American Tire Distributors employs approximately 4,800 employees across its distribution center network, including approximately 600 employees in Canada.
Ares Management, L.P. (NYSE:ARES) is a leading global alternative asset manager with approximately $84 billion of assets under management and approximately 750 employees in more than 15 offices in the United States, Europe and Asia as of September 30, 2014, pro forma for the previously announced acquisition of Energy Investors Funds. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its four distinct but complementary investment groups in Tradable Credit, Direct Lending, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.
The Ares Private Equity Group manages approximately $14 billion of assets as of September 30, 2014, pro forma for the previously announced acquisition of EIF. The Ares Private Equity Group’s corporate U.S./European strategy pursues majority or shared-control investments, principally in middle market companies with strong business franchises and in situations where its capital can serve as a catalyst for growth, and is currently actively investing out of ACOF IV, which has $4.7 billion of committed capital.
Visit www.aresmgmt.com for more information.
Forward Looking Statements
Statements included herein relating to Ares and its affiliates may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares’ filings with the Securities and Exchange Commission. Ares’ undertakes no duty to update any forward-looking statements made herein.
TPG is a leading global private investment firm founded in 1992 with $65 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, São Paulo, Shanghai, Singapore and Tokyo. TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings. The Firm invests in a variety of industries and has long maintained a strong presence in both retail and related manufacturing sectors. Significant investments have included Neiman Marcus, J.Crew, Savers, Burger King, China Grand Auto, Petco, Ducati, Armstrong World Industries and Grohe. For more information visit www.tpg.com .