Monro Muffler Brake Inc. will spend $10 million to acquire 26 Autotire Car Care Center stores from American Tire Distributors Inc.
The transaction is expected to close at the end of this month. The stores are located in the greater St. Louis, Mo., area and once belonged to Am-Pac Tire Distributors Inc. (ATD acquired Am-Pac in late December 2008.)
The acquisition will be primarily funded through Monro's existing line of credit.
Autotire generated net sales of $31 million in 2008.
"We are delighted with the prospect of integrating the Autotire stores into the Monro business to broaden our market position and further our strategy of achieving growth through reasonably priced, value-added acquisitions," says Monro Chairman and CEO Robert Gross.
"Autotire's established store density, average sales of $1.2 million per location, and loyal customer base will allow us to quickly and seamlessly expand Monro's footprint into the broader St. Louis metropolitan area, a new and exciting market for us."
