Heafner Tire Group Signs Letter of Intent to Sell Retail StoresLINCOLN, Neb.--Aug 28, 2001--An investment group consisting of certain key employees of T.O. Haas Tire today announced they have signed a letter of intent to purchase the assets of the retail division of T.O. Haas Tire from Heafner Tire Group, Inc. ("Heafner").
Under this agreement, the investment group headed by George Hoellen will acquire the 29 stores which make up the retail division with approximately 225 employees located in Nebraska, Kansas and Iowa. T.O. Haas Tire has operated retail and wholesale distribution centers since 1947. Heafner acquired T.O. Haas Tire in April of 2000.
"This agreement will allow T.O. Haas Tire's Retail Division to continue our current business philosophies which have proven to be very successful for us over the years," said George Hoellen, currently the Vice President - Retail, T.O. Haas Tire. "Our long history of marketing tires and automotive services have proven to us there are two very distinct and separate markets in the Midwest, and we have learned to tailor our stores to fit both the metropolitan and agricultural areas."
Dick Johnson, President and CEO of Heafner, said the decision was made after a great deal of thought. "Heafner has been focused on its core business which is the distribution business and Heafner wanted to complete a transaction that was in the best interests of our employees as well as our markets. We were looking for a group that was firmly committed to the retail business. The hardworking employees of T.O. Haas Tire's Retail Division and their customers deserve this consideration. T.O. Haas Tire's Retail Division as well as the Distribution Operation's reputation for quality service and products is unrivaled in the Midwest and we wanted to continue that positive momentum."
Heafner will continue to operate the T.O. Haas Tire's Distribution Operations as Heafner Tire Group - Central with centers in Lincoln, NE, Sioux Falls, SD, Watonga, OK and Nevada, IA.
Heafner Tire Group is the country's largest independent marketer of tires and tire-related products. The Company's distribution activities are conducted on a national basis through the 70 warehouses in three divisions servicing 35 states.
Terms of the transaction are not being disclosed at this time.