In May 2005, FdG Associates acquired The Hercules Tire & Rubber Company in partnership with senior management in a transaction that was structured to provide full liquidity to the Company's legacy shareholder group of tire dealers, who founded the company in 1952 as a cooperative buying group. Headquartered in Findlay, Ohio, Hercules has grown significantly over the last five decades to become a leading marketer and distributor of its Hercules private label branded tires and other internationally known independent tire brands to retail and wholesale customers across the United States, Canada and in 80 countries around the world.
Hercules will seek to capitalize on growth opportunities within the large and highly-fragmented after-market tire distribution industry, which is projected to continue to expand at a strong pace. The Company plans to further expand its Hercules private-label branded program and will continue to focus on internationally known independent tire brands and niche performance products, which are two of the fastest growing sectors of the tire market. Hercules will also aggressively pursue strategic acquisitions in select geographic regions where the Company can leverage its fixed cost base and expand distribution.
In June 2006, Hercules acquired Tire Distributor Inc., USA (TDI), a tire wholesaler headquartered near Miami, Florida, which will serve as the platform for Hercules to expand its sales and distribution capabilities throughout the Southeast and into Latin America. In addition, Hercules has opened six new distribution facilities in the United States and Canada.