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NORTH AMERICA NEWS
Symbology Buys Advantage ID
Symbology, Inc.has completed the purchase of its preferred retread tyre label distributor, Advantage ID. Having worked successfully together in the manufacturing and distribution of tyre label products for more than two years,
both parties decided it was time to make the relationship even better by officially combining forces. With the added resources of Symbology, and the industry experience of Advantage ID (ADID), clients will see
"I take great pride in announcing the acquisition of Advantage ID by our partner Symbology, Inc." said Tim Loden, President, Advantage ID. "My goal since forming Advantage ID was to become the premier supplier of
Symbology’s John Gorowsky
benefits in the expansion of available tyre label products and related supplies. The efficiencies of combined offices will also allow continued affordability of quality products.
retread shop consumable products (barcodes, shipping labels, printer product, business forms, etc.) to the commercial tyre industry. The goal remains the same -- to date, ADID supports close to 500 commercial tyre locations throughout the US and Canada." Advantage ID will continue as a tyre product division of Symbology, Inc., with Tim as division president. John Gorowsky, Vice President Sales & Marketing for Symbology, is equally pleased. "With our barcode and custom
label expertise, and Tim's in-depth tyre industry knowledge, we look forward to further increasing our market share, as well as expanding our product line to the commercial and retail tyre industry".
Minnesota’s Royal Tire is growing fast, focussing on retail, plus commercial and its Bandag retread operation
Tax Increases Create Opportunities For Royal Tire
As speculation about possible corporate tax increases grow in Minnesota, there has been an increase in businesses divesting themselves of non core elements and loss making units. Those who were considering selling have been promoted to make the decision sooner rather than later. That has spin off benefits for some players. St Cloud-based Royal Tire sees this as an opportunity for acquisition.
The company made its latest tracks recently, when President and CEO Mick Pickens said he’d made a deal to purchase Midstates Tire and Retreading in Rochester. The arrangement includes a 15,000-square-foot building, the addition of 20 employees who will begin working under the Royal Tire umbrella, and the only Bandag commercial tyre retreading operation in the south eastern portion of the state.
Terms were not disclosed, but Pickens said this addition brings to more than $10 million the amount Royal Tire has spent on acquisitions since 2010. The company has become Minnesota’s largest dealer of commercial tyres, such as those used on tractor trailers.
“A lot of industries are consolidating – a lot of mom-and- pops are deciding the tyre business isn’t the place to compete anymore,” said Pickens, who has served in his current role since 2008 and worked 10 years for Royal Tire. “To compete, you need inventory. So a lot of the smaller companies are getting out. Manufacturers require you to move a number of tyres, so there are becoming fewer and larger franchisees. It’s critical to be of a certain size now.”
Royal Tire’s makeover began less than three years ago with the opening of a store in Waite Park – one of six now in the St. Cloud
metro area.
By 2011, Royal Tire sold its wholesale business, Tire One, to U.S. Autoforce, and acquired Dependable Tire of Savage. Pickens said U.S. Autoforce and American Tire Distributors represent competitors with annual sales in the billions of dollars. While Royal Tire gave up the wholesale market, it continued to build its commercial and retail offerings. In 2011, it bought Dependable Tire of Savage and opened a store in Brainerd. Last year, it acquired Tires Plus of Alexandria and, in December, closed on St. Paul Tire.
Pickens said the acquisitions are examples of what’s happening in the industry. The St. Paul store was the case of an owner wanting to beat the Dec. 31 tax-year deadline. The Alexandria store was a father-son operation and the owners wanted to sell to an owner that could provide more marketing power. Plus, the Savage purchase was actually a merger with a store Royal Tire had opened in Shakopee.
“We prefer acquisition over greenfield growth because you’ve got a business that can be profitable on day one,” Pickens said. “When you start something fresh, like we did (in Shakopee), sometimes you suffer through a process before you build a customer base. In Alexandria, St. Paul and now Rochester, it’s like a turnkey operation. The same employees are working there and the same customers hopefully will continue to come back. The only difference is there’s a different name on the door.”
In addition to administration staff at its headquarters, Royal Tire also operates a manufacturing facility there and has about one-third of its 300 employees in the St. Cloud area. The company dates to 1948.
Conti Builds Lifecycle Network
18 Retreading Business
In addition to G&G Tire switching to Conti, The tyre maker has added another two US retreaders to its fold two years after launching the ContiLifeCycle retreading system in North America. This is to be followed by a development in Canada soon. The signing of G&G Tire in Plattsburgh, N.Y was followed by Bergey's Tire in Sellersville, Pa., and Rovince International Corp. in Compton, Calif., bringing to four the number of LifeCycle licensees in the U.S., along with Conti's own plant in Phoenix. These five plants, including King Tire Service Inc. Tire of Bluefield, W.Va., offer a combined annual
capacity of more than 250,000 units, according to figures released by Conti.
Of the new ContiLifeCycle system licensees, G&G Tire was the only one to convert its retreading capacity outright to the Conti process, replacing its former Bandag-system plant in Plattsburgh over the summer.
For Bergey's Tire, a long-time Continental and General truck tyre dealer, adding Conti-LifeCycle retreading capacity to its offerings complements the Marangoni Ringtread System it has operated since 2001.