ROCHESTER, N.Y. — Monro Muffler Brake has completed its previously announced acquisition of 36 leased Mr. Tire locations from privately held Mile One Automotive.
The acquired locations generated approximately $50 million in sales last year. Monro said the acquisition will expand the company’s market share in the mid-Atlantic region, particularly the Baltimore market. The transaction, valued at approximately $29 million, is expected to contribute between $5 million and $6 million to Monro’s EBITDA in the first year. The company said it anticipates the acquisition will be immediately accretive to earnings and contribute approximately $0.06 to $0.10 per share during fiscal 2005, which begins March 28.
“The acquisition of Mr. Tire fits squarely within our previously outlined strategy of seeking cost-effective acquisitions that will strengthen our geographic footprint, increase our market share and diversify our product line,” said Robert Gross, Monro’s president and CEO. “Mr. Tire has posted very strong performance and is a leader in the markets in which it operates. Their organization will not only strengthen our presence in the mid-Atlantic market but will also bring additional tire expertise and management strength to Monro. We welcome the Mr. Tire team and look forward to a profitable future together.”
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