Monro buys 24-store Vespia Tire chain
Monro Muffler Brake Inc. has signed a definitive agreement to purchase Vespia Tire Centers Inc., a 24-store chain based in South River, N.J. The transaction is expected to close by June 5, 2011.
"Vespia’s established store base in the New Jersey and Pennsylvania markets, with average sales of $1.5 million per location and loyal customer base, will help us to quickly expand Monro’s footprint in this densely populated market," says Robert Gross, chairman and CEO of Monro Muffler.
It is the company's intention to retain Vespia’s store employees, he added.
The acquisition will be funded primarily through Monro's existing line of credit. The company expects the purchase to be slightly accretive in fiscal 2012.
Vespia.generated net sales of approximately $36 million last year.The dealership was 47th on the Modern Tire Dealer 100 list in 2010. Monro was fourth on the list.