Edmonton's Fountain Tire is making inroads into Northern Ontario through a partnership arrangement with retailer Royal Tire.
The company bought a 50 per cent stake in Royal for an undisclosed sum. Royal has nine locations in the region including locations in Sault Ste. Marie, Sudbury and Timmins.
Fountain said establishing a presence in this region is a strategic move to diversify beyond its Western Canadian markets.
“The opportunities we envision for mutual growth and shared learning make our relationship with Royal Tire very exciting,” said Fountain Tire CEO's Brent Hesje, in a July 9 statement.
Royal is adopting Fountain's shared ownership structure by offering top performing managers with the opportunity to become part-owners in their operation.
“The new relationship is going to create some amazing synergies,” said Phil Shaw, one of Royal's equity partners.
Fountain has a 154-store tire and automotive service network, providing tires to commercial truck fleets and off-road vehicles in agriculture, oil and gas, mining, construction and aggregate sector.
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