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June 19, 2018 02:00 AM

TireHub clears regulatory hurdles; to start operations July 1

Tire Business Report
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    ATLANTA—TireHub L.L.C., the Goodyear-Bridgestone Americas Inc. joint tire distribution venture, has cleared regulatory scrutiny and will begin serving customers the first week of July, the partners said June 19.

    TireHub will combine Goodyear's company-owned wholesale distribution network with Bridgestone's Tire Wholesale Warehouse business, creating a business with 80-plus locations throughout the U.S.

    The venture will be based in Atlanta and managed by an independent management team led by CEO Peter Gibbons, a veteran business and supply chain executive.

    The companies disclosed their plan to create TireHub in mid-April, with an estimated fair value of roughly $600 million.

    The transaction will enable Bridgestone and Goodyear to grow their respective tire businesses and capture enhanced value for their brands, the partners said.

    TireHub will provide U.S. tire dealers and retailers with a comprehensive range of Bridgestone- and Goodyear-brand passenger and light truck tires—including the two tire makers' associate brands—with an emphasis on satisfying growing demand for larger-rim diameter premium tires. The venture immediately will have the scale to reach the vast majority of retail locations in the U.S. daily, the partners said. TireHub will complement both companies' networks of existing third-party distributors and provide a fully integrated distribution, warehousing, sales and delivery solutions.

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