Groupe Touchette to Acquire Canadian Unit of US Tire Distributor

Groupe Touchette Inc., the largest Canadian-owned tire distributor, struck a deal to acquire American Tire Distributors’ assets in the country, a move that may roughly double its annual sales.

Montreal-based Groupe Touchette will serve “all major manufacturers and supply customers across Canada” after the deal, the company said in a statement Wednesday. The firm’s revenue will rise from C$800 million ($614 million) to between C$1.4 billion and C$1.7 billion, according to a person familiar with the matter.

The two private companies, which didn’t release any financial details about the transaction, will enter into a contract under which American ...