Omni United buys California’s Interstate Tire Distributor
Omni United has bought out California-based wholesaler Interstate Tire Distributor (ITD) for an undisclosed amount.
The acquisition “substantially accelerates the global growth strategy of Omni United”, the company said in a statement to the market on Thursday.
Singapore-based Omni is remaining tight-lipped about the terms of the transaction, but it will significantly boost the company’s distribution network in the U.S. by more than doubling its current retail reach.
The U.S. is the largest tire market in the world and Omni generates close to 65 percent of its revenues here.
ITD a well-known Californian distributor
ITD was founded in Los Angeles in 1963 and has grown throughout southern California and across southwestern states to service more than 2,500 tire retailers. It operates six locations in key tire markets including Commerce, San Bernardino and Fullerton in California, Phoenix, Salt Lake City and Las Vegas.
ITD’s focus has been on distributing mid–tier brands like Toyo, Nexen and Yokohama, and value-driven brands including Mastercraft, Duro, Atturo and its own Goodride brand.
Omni’s takeover means an expansion of ITD
Omni plans to “significantly expand” ITD by building larger warehouse facilities, increasing its geographical reach and launching new products.
ITD will now also distribute some of Omni’s other brands, including the recently launched Timberland Tires.
Omni United chief executive G.S. Sareen said the acquisition was a step towards vertical integration in the business and the company was excited about the opportunities for growth, learning and innovation.
“The acquisition of ITD is another important strategic step in the evolution of Omni United as a tire designer and marketer and it will reinforce our presence in our core market, the U.S.A.,” Sareen said.
“We are constantly looking at acquiring similar businesses in other U.S. and international markets.”
For his part, ITD president John Farkas said the distributor was “very pleased” to join the Omni fold.
“Omni United… shares the same philosophy and commitment to excellent service and high-quality products,” he said.