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Bankrupt GPX Tire reaches sell-off agreements with trio of suitors

Monday, December 14, 2009 - 01:00

Executives at GPX International Tire Corp. have obtained bankruptcy court approval to sell the company in three separate transactions.

The off-the-road tire provider’s U.S. operations will be sold to Alliance Tire Corp. Alliance made the winning bid at an auction; Titan International, Inc. had submitted an alternative offer, according to Craig Steinke, GPX’s CEO.

Alliance will acquire the company’s American assets, customer relationships, warehouse footprint and global rights to the Galaxy and Primex brands along with its medium radial truck distribution division and GPX Tyre South Africa.

GPX’s Canadian subsidiary, Dynamic Tire Corp., will be sold to a management buyout team led by Robert Sherkin and Peter Koszo. It is to become a separate entity covering Galaxy and Primex, medium radial truck and car tires and private label sourcing.

The company’s solid tire division, together with its Gorham, Maine; Red Lion, Pa.; and Hebei, China factories, will be sold to the MITL Acquisition Co., which is funded by an investor group working in cooperation with GPX’s existing management. It will continue to produce the MaineTire, MITL, ITL and Brawler brands.

“The court’s approval of these transactions is an excellent outcome for the company and its customers, vendors and employees,” Steinke says.

“We are excited to work with the three acquirers to close the transactions prior to the end of the year. In doing so, we will enable the continuation of quality and innovation inherent in GPX’s brands while providing employment for over 95 percent of GPX’s workforce,” he reports.

GPX has operated as a “debtor in possession” since its Oct. 26 Chapter 11 bankruptcy filing.

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