ERJ staff report (TB)
Portland, Oregon -- Northwest Tire Factory L.L.C. has acquired the wholesale operations of Nokian Tyres Inc. in Denver and will begin operating out of the tyre maker's former Denver warehouse May 23.
â€œThe acquisition of this facility completes one of our strategic goals for expansion in the southwestern United States,â€ said Tire Factory Chairman Chris Cornelius, who also is co-owner of Clair & Dee's Tire Factory in Rexburg, Idaho. â€œOur new Denver facility will make Tire Factory's programs and buying power more accessible to independent tyre dealers who want to become part of the nation's best member-owned tyre buying and marketing co-op.â€
The acquisition gives Portland-based Tire Factory its third warehouse in addition to distribution centers it operates in Portland and Salt Lake City. CEO John Kreidel said the Denver facility will give the marketing cooperative more efficient distribution in the western US, which will â€œkeep transportation costs lower for our members and allows them to grow in a marketplace that daily is more competitive.â€
â€œNokian Tyres Inc. has a strong partnership with Tire Factory, one that is based on shared goals for growth in the northwestern US,â€ said Jari Lepisto, general manager of Nokian North America. â€œWhen Tire Factory expressed an interest in acquiring our operations in Denver, we determined that having them do so was an excellent fit with our total growth plan in that territory, and we were pleased to enter into this agreement.â€
Tire Factory has more than 200 members operating in 15 western sales and its retail sales exceed $300 million.
From Tire Business (A Crain publication)
Press release from Tire Factory