UPDATE 1-TPG-backed US tire distributor ATD files for IPO of up to $100 mln
June 16 (Reuters) - Private equity firm TPG Capital LP-backed ATD Corp, one of the largest U.S. tire distributors, filed with U.S. regulators on Monday to raise up to $100 million in an initial public offering.
The company, which sells brands like Hercules, Ironman and Capitol, listed Merrill Lynch, Pierce, Fenner & Smith, Deutsche Bank Securities and Goldman Sachs as lead underwriters to the IPO. (r.reuters.com/dep22w)
Founded in 1935, ATD, or American Tire Distributors, is a wholesale distributor of tires, custom wheel and related tools to about 72,000 customers and operates more than 140 distribution centers in the United States and Canada.
The Huntersville, North Carolina-based company's net sales jumped 73 percent to $3.8 billion between 2009 and 2013.
ATD's net sales rose a more modest 28 percent to $1.07 billion in the three months ended March 31, while its loss widened to $34.04 million from $16.3 million a year earlier.
The company counts TCI Tire Centers, automotive dealership channel provider Dealer Tire as well as online tire service operator Tire Rack among its competitors.
TPG acquired ATD in 2010 for $1.3 billion from a consortium of private equity firms that included Investcorp, Berkshire Partners LLC and Greenbriar Equity Group LLC.
Reuters in May had reported TPG was exploring an IPO of ATD, which could value the company at more than $2.5 billion. Continued...