global tyre retailers

7/27/2019 Global Tyre Retailers

1/24

www.indiabusinessreports.com

Organised Retail in Tyres: Global Examples

Sector: Retail

Sep 2013


2/24

Index

US 3

Europe 12

ROW 16

Transactions 20

www.indiabusinessreports.com Global Tyre Retail 2


3/24

US

www.indiabusinessreports.com Indian Dental Services Market


4/24

Discount Tire (unlisted)

Started in 1960

Claims to be the worlds largest tyre retailer, with over 850 stores

The company remains privately owned

Has stuck to the knitting sells only tyres and accessories like alloy

wheels

www.indiabusinessreports.com 4Global Tyre Retail

1 736

209

418

790850

1960 1970 1980 1990 2000 2010 2013

Store Count - Discount Tire


5/24

TBC Corporation (was listed, now acquired)

Traces origin to 1956, then called Cordovan Associates.

Cordovan Associates changed its name to Tire & Battery Corporation in

1972

Brands include Tire Kingdom, National Tire and Battery, and franchised

stores under Big O Tires. Has close to 850 outlets

Markets and sells nine proprietary brand of tires

Also does tyre distribution through Carroll Tire wholesale distribution

centers, where it markets to independent tire dealers across the United

States.

In 2005, TBC Corporation was purchased by Sumitomo Corporation of

America (SCOA) in a $1.1bn transaction



6/24

Les Schwab (unlisted)

Started in 1952, in Pinedale, Oregon

Close to 450 stores, present in nine states in Western USA

Employs 7000+ people, highly regarded for its employee friendly

policies

In addition to tires, the company sells a variety of other auto parts and

auto related services, including brakes and shockers.

Privately held

Revenues reportedly around $1.6bn



7/24

Monro Muffler Brake and Service Inc (listed)


Started in 1952, listed in 1991

935 stores in 22 states, of which, 397 tire stores are tire stores, and the

rest are service stores

Has the following business areas: Tyres (42%), Maintenance

(29%), Brakes (15%), Steering (10%), Exhaust (4%)

2012 turnover - $686mn, EBIDTA margin 16.8%, Net Margin 8%

Tyres 42% of total sales, from 434 stores. Has done 24 acquisitions in

11 years to build the tyre vertical. Aiming for 1300 tire stores

Market cap: $1.38bn.

Valuation (www.finance.yahoo.com)

EV/EBITDA: 14x

Price/Sales: 1.8

P/E: 32 (trailing)

P/E (FY15): 20x

($mn) FY11 FY12 FY13

Revenues 637 687 732

Growth (%) 12.8 7.8 6.6EBITDA 101 116 101

Margin (%) 15.9 16.9 13.8

Net Income 46 55 43


8/24

The Pep Boys (listed)


Started in 1921

Has 750+ stores in 35 states of US, and 19,000 employees

12.8 million sft of retail space, 7300 service bays

Apart from tires, provides a variety of automotive repair services

including: Scheduled maintenance services, oil changes and tune-

ups, brake repair and replacement, air conditioning, financial services

Tires are 19% of revenue, other parts and accessories are 60%, and

service is 21%

Market cap: $639mn.


EV/EBITDA: 7.8x

Price/Sales: 1.15x

P/E: n.a

P/E (FY15): 18x

($mn) FY11 FY12 FY13

Revenues 1989 2063 2091

Growth (%) 3.7 1.4

EBITDA 83 66 12

Margin (%) 4.2 3.2 0.6

Net Income 36 29 13


9/24

TCi Tire Centers (unlisted)


A wholly owned subsidiary of Michelin North America Inc.

58 retail locations

77 wholesale distribution centers

10 retreading plants

Has two divisions: distribution and commercial.

The distribution division serves passenger and light truck tire retailers across

the country.

TCi supports its truck and earthmover customers from its 68 commercial

centers located throughout the United States.


10/24

S&S Tire


Started in 1974

Current size:

8 Retail Tire Stores

18 Commercial Truck Tire Centers,

3 Tire Retreading Plants,

10 Wholesale Tire Distribution Centers

Over 1 million square feet of inventory space

Does business in 15 states.


11/24

Tire Distribution Systems (TDS)


44 locations in 8 states

Formed in 1996, when Bandag, worlds largest supplier of retreading

materials, acquired 100 percent interests in five Bandag dealerships

through a newly formed subsidiary, Tire Distribution Systems, Inc.

In 1996, these dealerships had aggregate pre-tax earnings of $16

million, net sales of approximately $366 million

Aggregate cash purchase price of the transactions was approximately

$158.5 million

In 2006, Bandag itself got acquired by Bridgestone Americas

Holding, Inc., the U.S. subsidiary ofJapans Bridgestone Corporation


12/24

Europe



13/24

Euromaster

Fully owned subsidiary of Michelin

Started in the 1967 in UK, known as ATS then.

In 1991, the brand Euromaster is created, ATS network became ATSEuromaster.

In 1992, the first center branded Euromaster is opened in France

Network now present in 17 countries, and over 2200 outlets

Key countries:

UK: 476 France: 408

Germany: 352

Spain: 350

Italy: 105

Netherlands: 101

Sweden: 76

In 2011, Euromaster reported turnover of1,872m, and had 11,500employees

Sells over 9 million car tyres per year, of all brands (not just Michelin)



14/24

Kwik Fit

Started in 1971

1,218 directly-managed tyre fitting centres in the UK, France and Holland.

Market leader in UK and Holland

In 1995 Kwik Fit Insurance Services was launched to offer Kwik Fit

branded motor insurance on behalf of a panel of leading insurance

companies.

The Groups turnover in 2010 was 875 million, of which the Groups

major business, Kwik-Fit UK, with 673 centres, represented 561 million

Ownership changes at Kwik Fit

1999: Acquired by The Ford Motor Company for more than $1billion

2002: Ford divests to CVC Capital Partners

2005: Acquired by PAI Partners, which sold sold its German subsidiary Pit-Stop and also sold Kwik Fit Financial Services to Fortis UK.

2011: Acquired by Itochu Corp



15/24


16/24

RoW



17/24

Canadian Tire Corp (listed)

Started in 1922

490 tire outlets, all in Canada

Has moved much beyond tire retail, into areas like gasoline retail, home

products, garments

Does not disclose tire revenue separately. Total retail revenue was

C$10.4bn in 2012.

Market Cap: $7.5bn


EV/EBITDA: 12x

Price/Sales: 0.68

EV/Sales: 0.88

P/E: 15 (trailing)


(C$mn) 2011 2012

Revenues 10,387 11,427

Growth (%) 10.0

EBITDA 762 803

Margin (%) 7.3 7.0

Net Income 467 499


18/24

Beaurepaire (unlisted)

Started in 1922

Australia's leading tyre retailer, with approximately 300 stores

nationwide.

Merged with Dunlop Group in 1980



19/24

Bob Jane T Mart (unlisted)

Started in 1965

Has 156 outlets currently through Australia

Apart from tyres, sells car batteries as well



20/24

Transactions



21/24

Japanese conglomerates entering US, Europe


TBC Corp Sumitomo Corporation

In 2005, TBC Corporation was purchased by Sumitomo Corporation of America (SCOA) in$1.1bn transaction

Was listed on Nasdaq prior to this

Kwik Fit many Itochu Corp Sold in 1999 by the promoter to the Fort Motor Company for US $1.6b.

Ford sold in 2002 to CVC Capital Partners

In 2005, Kwik Fit was sold for 800m to PAI Partners, a leading French-based private equityfirm.

The Kwik Fit Financial Services arm of the business was sold by PAI to Fortis InsuranceUK, now Ageas (UK) Limited, for a figure of 215m in 2010, while the tyre retailing andservice centre business was sold to ITOCHU Corporation for $1bn


22/24

Acquisitions by Tyre Cos


Pirellis several acquisitions

Dckia Holding AB, Sweden, 2011: Acquired Swedens multi-brand tyre distributionfrom the private equity group Procuritas Capital and minority shareholders for 625million kronor, or approximately 70 million euro.

Campneus, Brazil, 2012: Acquired 60%, 54 outlets

Abouchar, Brazil, 2013: Abouchar had 29 outlet

Michelin - TCi

Michelin acquired USAs largest commercial tyre retailer and retreader TCi in 1999

At that time, TCi had revenues of around $500mn, from 163 locations


23/24

Disclaimer

www.indiabusinessreports.com Global Tyre Retail 23

Copyright 2013 India Business Reports

All rights reserved. No part of this publication may be reproduced or utilized, stored in a retrieval system, or transmitted in any form or

by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of India Business Reports

(IBR)

Legal Notices and Disclaimer

None of IBR, its partners, employees, affiliates, representatives or advisors make any representation or warranty, expressed or

implied, as to the accuracy or completeness of any of the information contained herein, including any opinion or any other written or

oral communication transmitted or made available. Each recipient of such information expressly disclaims any and all liability relating to

or resulting from the use of such information and communications by a recipient or any of its affiliates, advisors or representatives. Inparticular, no representation or warranty is given as to the achievement or reasonableness of any future projections, estimates or

statements about the future prospectsof any of the companies.

This document is for the use of the persons who receive it directly from IBR. Recipients agree that all of the information contained in it

is of a confidential nature, and that they will not, directly or indirectly, disclose any such information without the prior written consent

of IBR.

Confidentiality

In consideration of you receiving a copy of this document, you agree to keep confidential the contents of this document and shall

not, without the prior written approval India Business Reports (IBR) disclose to any person the whole or any part of the informationcontained in, or associated with this document.


24/24

Thank You

www.indiabusinessreports.com Indian Restaurant Market

[email protected]

global tyre retailers

Documents