Monro acquires Vespia Tire Centers
Monro Muffler Brake Inc., a provider of automotive undercar repair and tire services, has completed the acquisition of Vespia Tire Centers Inc. The 24 Vespia locations purchased, which generated net sales of $36 million in 2010, expand Monro’s footprint in New Jersey and eastern Pennsylvania.
Monro also announced that it has completed an amendment of its existing credit agreement that extends the maturity date by five years. The amended agreement increases the amount of borrowings which the company may obtain to $175 million.
“We are pleased to have completed both the Vespia transaction and to have extended our credit agreement,” says Robert Gross, Monro chairman and chief executive officer. “The Vespia transaction fits well into our stated strategy of seeking value-priced acquisitions that strengthen our geographic footprint and expand our market share. We are currently integrating the Vespia stores into our highly efficient business model and expect to benefit from the established store density, strong brand recognition, and loyal customer base of this well-established chain.”
In addition, the company announced that Gross will present at Oppenheimer & Co.’s Annual Consumer Conference in Boston on June 29, 2011. A live Web cast of the presentation will be available via the Investor Relations section of the company’s Web site (www.monro.com) and will be archived for two weeks.