TORONTO -- Canadian Tire Corp. said Friday it completed a $24.5 million deal to sell much of the assets of Texas-based White Stores Inc. to Western Auto Supply Co. of Kansas City, Mo.
The deal could be worth a total of between $28 million and $32 million once the Canadian auto parts and hardware company sells more assets of the White chain, a money-losing operation with a similar product line.
Western Auto, controlled by former Treasury Secretary William Simon's Wesray Capital Corp., and one of its affiliates, obtained 40 stores, three warehouses and other White assets.
Payment was almost $2.2 million in cash, $602,600 in an 11 percent note that matures in December 1986, and $21.7 million in an 11 percent non-recourse mortgage note due Feb. 24, 1988.
Western Auto will obtain 18 more stores and other assets if Canadian Tire can settle with landlords or former White dealers who are subject to bankruptcy proceedings in the United States, the company said.
An earlier plan that would have had White continue to operate between six and 10 stores has been dropped and Canadian Tire will attempt to dispose of all of the chain's assets not sold to Western Auto.
Canadian Tire acquired the White stores and warehouses in 1982 and began handing them to individual dealers. White, based in Wichita Falls, Texas, lost about $37.6 million in 1985 and approximately $39 million a year earlier.