PHILADELPHIA — Pep Boys has entered into a definitive agreement to acquire the assets and assume the property leases of Florida Tire, a service and tire provider to customers in Orlando since 1987.
The $4.35 million acquisition is expected to close on Oct. 30, generate annual sales of more than $14 million and be accretive to earnings in its first year of operations. In addition to offering customers Pep Boys’ full range of automotive repair and maintenance services, all 10 stores will feature a full assortment of Goodyear, Dunlop and house-brand tires.
“This acquisition fits squarely within our stated strategy to grow through Service & Tire Centers,” said CEO Mike Odell. “We are very excited to add 10 new Service & Tire Centers that will be able to immediately leverage the existing inventory, advertising and distribution employed by our eight Supercenters currently operating in Orlando. To be able to expand our relationship with the Goodyear Tire & Rubber Co. by featuring Goodyear-brand tires in the Orlando, Fla., market makes the transaction that much more attractive.”
With the addition of the these 10 locations, Pep Boys now expects to open approximately 25 new Service & Tire Centers in fiscal 2009, ahead of its original 15 store target. Through individual location and small-chain acquisitions, Pep Boys is now targeting the high end of its previously announced targets – 40 new locations for fiscal 2010 and 80 for fiscal 2011.
