Leeds West Groups Buys 42 Midas Locations
Leeds West Groups (LWG) is buying Auto Systems Experts Inc. (ASE), an employee-owned company based out of Davenport, Iowa, that operates 42 Midas locations in six states in the Midwest.
The planned acquisition includes all of ASE locations, real estate holdings, buildings, and equipment. LWG says it is the largest single acquisition by a Midas franchisee in Midas history. Alan Mahrt, the former president of ASE will serve as chief operating officer of the new division of Leeds West Groups.
LWG is a capital group that acquires, owns, and manages Midas, Big O Tires, SpeeDee Oil Change & Auto Service locations in nine states. Excluding the ASE acquisition, LWG’s properties cover more than 20% of the US in markets with 55 franchise locations in Colorado, Indiana, Illinois, Michigan, Wisconsin, New Jersey, Pennsylvania, Delaware and Connecticut. The ASE acquisition boosts LWG’s holdings to 97 locations, across 15 states and 850 employees. The company says it will be collectively the largest Midas, Big O Tires, SpeeDee Oil Change & Auto Service automotive group in the nation.
The transaction has been approved by each ASE and LWG respective board of directors and is subject to customary closing requirements and regulatory approvals. Financial terms of the transaction were not publicly disclosed.
“This acquisition represents a powerful opportunity for LWG to significantly expand our presence in the United States in the franchise aftermarket automotive repair industry,” says Judd Kyle Shader, CEO, founder, and board of directors member of LWG. “As one of the premier automotive management companies, Leeds West Groups has clearly demonstrated its ability to apply its considerable resources and expertise to enter and lead in the franchise aftermarket automotive repair marketplace for many years to come.”
Founded in 1957, Auto Systems Experts, Inc. (ASE) is one of the oldest Midas franchisees in the country providing comprehensive diagnostics and repair of all major automotive systems. Prior to the acquisition ASE was 100% employee-owned under an employee stock option plan.
“We have worked closely with LWG in a strategic partnership over the last two years to make this acquisition a natural fit that will grow ASE for many years to come in resources and new locations, making this a seamless benefit for all,” says Alan Mahrt, former president of Auto Systems Experts.
In 2013, LWG acquired 30 Midas corporate stores in nine states in an arrangement to convert Midas corporate shops into franchised locations. At the time of the transaction it was the largest single Midas store purchase by a franchisee in the company’s history.
“The ASE and Leeds West groups represent two of the finest dealer teams within the Midas system and we are extremely excited to work with both Judd and Alan as they continue to expand into new areas and grow market share,” says Ron Seagle, vice president and general manager, Midas.
LWG is headquartered in Greenwood Village, Colo. The company is is capitalized by Private Equity and Family Office funds and acquires, owns, and manages aftermarket automotive repair franchise brands within the U.S.
There are more than 2,100 franchised and licensed Midas shops in 14 countries, including over 1,200 in the United States and Canada.
TBC Corp. serves wholesale customers in the United States, Canada and Mexico through TBC Brands, Carroll Tire Co., TBC International, and TBC de Mexico.
TBC also has more than 3,200 franchised and company-operated tire and automotive service centers under the brands Tire Kingdom Service Centers, Merchant’s Tire & Auto Centers, NTB Tire and Service Centers, Big O Tires and Midas.