Monro Muffler Brake Inc. is acquiring 20 more stores in Michigan, Illinois and Indiana.
In a press release issued with the tire dealer's latest earnings results, Monro says it has signed definitive agreements to acquire 20 stores, including eight from an existing Car-X franchisee. The stores will fill in the company's markets in three states, and are expected to add about $13 million in annualized sales. The stores' sales mix is heavily dependent on service, Monro says, with tires making up only 5% of sales.
John Van Heel, CEO and president of Monro, told investors that low percentage of tire sales presents "plenty of opportunity."
Monro didn't identify the parties it acquired, but says 12 of the stores will operate under the Monro name, and the eight Car-X stores will continue to operate under that brand.
The acquisitions are expected to close in the second quarter of fiscal 2018.
Van Heel said Monro continues to have aquisition deals lined up. "The pipeline for acquisitions remains robust," with 10 non-disclosure agreements signed.
Van Heel did say sellers are delaying transitions until the new year, hoping for tax reform legislation. Those deals could still close in Monro's current fiscal year however, since the company's year begins in late March.
For more information about Monro's latest financial report, read: Brake Jobs Help Monro's Existing Stores Boost Sales