Two prominent companies in Atlantic Canada’s tire and automotive service industry have announced a merger.
Coast Tire & Auto Service and Andy’s Tire Group will join together as of March 1, 2024, the companies announced Monday.
“We are thrilled to bring together these storied companies. This merger is more than a business decision; it’s a strategic move to create the best commercial tire and automotive service network across Atlantic Canada,” Andrew Pye, CEO of the newly formed entity, said in a news release.
“Our combined resources, expertise, and commitment to the Atlantic community will allow us to serve our customers even better.”
John Correia, vice-president of sales and marketing at Coast Tire, said in an interview that he’s also excited about the merger.
Correia believes the move will take both companies with strong Maritime roots to the next level.
“We’re certainly excited about it. We’re basically doubling the number of corporate stores that we’ll have and we’ll have probably another 30 associates. “We’re planning on having probably 70 touchpoints when we do the whole merger together in the Atlantic provinces,” said Correia.
Correia said discussions about a merger were in the works for about eight months. They looked at what manufacturers and products would fit for the two companies together.
“The supply chain, as everybody is aware, has made a significant change. You do have to have a few more options because the supply chain can become short on some of the stuff. You gotta ensure that you have options,” Correia added.
“Having other tire manufacturers is not a bad thing. It does spread your wings and helps you to grow your business.”
The vice-president said employees and customers won’t notice any changes once the merger goes through.
“We’ve just got a fabulous team and you need good people in any type of business. I know that Andy’s group is in the same position, so no, no changes on bodies, and our business will be a lot stronger overnight,” he said.
“We’re floating with about 250 to 260 people within Coast, and I would say that the numbers are pretty close to being the same or a little bit higher with the other group.”
The newly combined group will have a total of 46 stores, three distribution centres, and three retreading plants across Atlantic Canada.
Coast Tire & Auto Service is based in Saint John and Andy’s Tire Group is headquartered in Halifax.
