ROCHESTER, NY — Monro Muffler Brake said today it is buying 10 retail tire stores from Henderson Holdings, Inc., adding to the 26 Mr. Tire retail stores Monro purchased from Atlantic Automotive Corp in March 2004. While Henderson Holdings, Inc. will receive some cash as part of the transaction, the acquisition will be funded primarily using Monro common stock.
The stores currently operate under the Mr. Tire brand name and were part of the original Mr. Tire chain. For the past six years, however, they have been operated separately by Henderson Holdings. The stores are located in the southern Maryland market and have combined annual sales of approximately $12.5 million. The stores will retain the Mr. Tire brand name and will be operated as part of Monro’s tire division.
Robert Gross, Monro president and CEO, said the new stores will not only to strengthen Monro’s geographic footprint but also to complement its existing tire stores. “Monro’s market position, purchasing power and marketing expertise can complement the stores’ existing operating strengths and help to drive sales growth and expand margins at these new locations,” said Gross.
Gross added the stores are expected to be accretive to Monro’s earnings in year one. The transaction is expected to close in March 2005, subject to customary terms and conditions. Monro plans to report results for the third quarter of fiscal 2005 on or about Tuesday, January 18.
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