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SSG Client Transactions

Title

A to Z Tire & Battery, Inc.
Client Profile

Client Profile

A to Z is one of the leading independent tire distributors in the United States, supplying more than 12,000 different light truck, passenger, and medium truck radials, as well as industrial and agricultural tires and supplies. Headquartered in Amarillo, Texas, the Company specializes in offering more than 5,000 dealers a broad selection of tire products and related services at competitive prices. Over A to Z’s 88 year history, the Company has built an infrastructure of warehouses, satellite locations, retail stores, and retread plants to service customers throughout much of the Midwest and Rocky Mountain regions.
Situation

Situation

In September 2009, an elevated tariff was instituted on Chinese passenger and light truck tires imported into the United States, causing tire prices across the industry to rise. This additional tariff reduced the viability of some of the Company’s product offerings due to the cost of importing certain brands. The suppressed financial performance that resulted caused management to re-evaluate its business strategy, focusing on wholesale revenue, and closing certain unprofitable or marginally profitable retail stores. A to Z’s substantial revenue growth from this new strategy started in earnest once the Company instituted additional just-in-time delivery capabilities, which were expanded throughout 2013. The ability to provide fast service to customers entrenched A to Z within customer supply chains, resulting in double digit revenue growth year over year. A to Z heavily invested in building out the required infrastructure to support this new wholesale focus, and as a result, needed a new lender willing to grow with the Company and support the Company as its profitability continues to improve.
Solution

Solution

SSG was retained as A to Z’s investment banker to source a new credit facility that could fully support the Company’s growth plan. SSG canvassed a wide range of lenders, ultimately delivering multiple, competitive term sheets. The $21 million financing will provide A to Z the runway to continue its substantial growth.
November 2014

$21,000,000
Revolving Credit Facility


The undersigned acted as Investment Banker to
A to Z Tire & Battery, Inc. on this transaction.

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