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TPG Sells Half of American Tire Stake to Ares Fund.

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Vincent

MANews-(C)2009-2015

4 February 2015 - A fund managed by the private equity group of Ares Management, L.P. (NYSE: ARES) has entered into an agreement to acquire a significant stake in US-based American Tire Distributors, Inc., resulting in equal ownership between Ares and current majority shareholder TPG Capital LP, American Tire said.

Terms of the transaction were not announced. It has been reported in Bloomberg that Ares would made a roughly USD 620m equity investment in American Tire. Bloomberg also said that American Tire would seek a USD 805m junk bond financing, part of which would be used to pay a dividend to TPG.

American Tire Distributors is one of the largest independent suppliers of tires to the North American replacement tire market. It operates more than 140 distribution centres, including 25 distribution centers in Canada, serving approximately 80,000 customers across the US and Canada.

The company employs approximately 4,800 employees across its distribution center network, including approximately 600 employees in Canada.

Ares Management is global alternative asset manager with approximately USD 84bn of assets under management and approximately 750...

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