MFA Oil and Big O Tires end joint venture
Bore/MPC LLC, the joint venture between MFA Oil Co. and Big O Tires LLC, a subsidiary of TBC Corp., announced that MFA Oil has purchased Big O Tires’ interest in the partnership.
Under the agreement, MFA purchased Big O’s portion of BORE/MPC LLC. All 14 existing locations in Missouri and Arkansas will continue to operate as Big O Tires locations under the ownership of MFA.
The existing franchise agreements enable MFA to continue operating the locations as Big O Tires franchises. In addition to established locations, future locations will also operate under the Big O Tires brand. Expansion plans have been identified with two more locations in Missouri and Arkansas scheduled to open later this year, and additional opportunities are also under consideration.
“This is a good deal for MFA Oil Company,” says Rusty Coats, director of retail tire operations. “Not only was the cost of the buyout favorable, but the single company ownership will allow us to be quicker and more flexible in our business decisions.”
Formed in 1998, Bore/MPC is a Big O Tires franchisee that owns and operates 14 Big O Tires stores in Camdenton, Columbia, Hollister, Jefferson City, Nixa, Osage Beach, Rolla, Springfield and St. Roberts, Mo., and in Bentonville and Springdale, Ark. New stores also will open in Branson, Mo., and Fayetteville, Ark., this year.
The company will remain Bore/MPC, a wholly owned subsidiary of MFA Oil Co. All the stores will remain Big O franchise stores with Bore/MPC as the franchisee. Consumers will see no changes as the joint venture was treated like all other franchisees, according to Coats.
“As Big O Tires continues to look for opportunities to expand, this purchase will make that process, and others, more efficient,” says Mark Fenner, MFA Oil president and CEO. “And we’re very fortunate to have Rusty leading the Big O Tires team with his 40 plus years of experience in the tire and automotive repair business.”
Kevin Kormondy, executive vice president and chief operating officer of Big O Tires, says, “We are eager to continue our relationship with MFA Petroleum Company, and we are confident that this strategic decision will be beneficial for the Big O Tires brand and for MFA.”
“As we evaluate opportunities that are in-line with our mission to exceed expectations for our system, including our customers and franchisees, it will be relationships like this which we have enjoyed with MFA that afford us the opportunity to focus on our commitment to operational excellence and consistent execution."
MFA Oil is a farmer-owned cooperative, which currently has more than 40,000 farmer (member) owners.
Big O Tires LLC has 387 franchisee-owned and two company-owned stores primarily located in the western and midwestern United States. It also distributes tires and other automotive service products to associate dealers in western Canada.
TBC Corp. is No. 2 and Bore/MPC LLC is tied for No. 77 on the Modern Tire Dealer 100.