ROCHESTER, N.Y. — Monro Muffler Brake has completed the acquisition of Autotire Car Care Centers from Am-Pac Tire Distributors Inc., a wholly-owned subsidiary of American Tire Distributors.
The 26 Autotire locations Monro has purchased will expand the company’s footprint into St. Louis, Mo., and the surrounding area. The acquired stores will continue to be operated under the Autotire brand name, and Monro said it intends to retain all of Autotire’s store employees.
The purchase price for the chain was approximately $10 million and was funded through the company’s existing line of credit. Autotire generated annual net sales of approximately $31 million and was profitable in 2008. The impact of this acquisition is included in the company’s previously provided guidance for fiscal year 2010.
“We are pleased to have completed this transaction earlier than originally anticipated,” commented John Van Heel, president of Monro. “A low-risk, low-cost and high-reward opportunity, the Autotire transaction fits perfectly into our stated strategy of seeking value-priced acquisitions that strengthen our geographic footprint and expand our market share. We look forward to adding the Autotire name to the Monro family of brands and to integrating the Autotire stores into our highly efficient business model. Further, we expect that we will fully leverage and benefit from Autotire’s positive attributes, which include its established store density, strong brand recognition, effective advertising strategy and loyal customer base.”