Midas acquires SpeeDee quick-lube chain
Midas Inc. has acquired 181 SpeeDee quick-lube and automotive maintenance shops throughout the United States and Mexico via its purchase of G.C. & K.B. Investments Inc.
SpeeDee, which is based in New Orleans, La., posted $78 million in sales in the U.S. during 2007.
The $20.8 million deal "will enable both Midas and SpeeDee shops to benefit from the strengths of the two brands' respective service offerings," says Midas Chairman and CEO Alan Feldman.
Oil changes and other fluid replacements account for 50% of SpeeDee's U.S. sales vs. 6% at Midas shops. "Conversely, brake services account for nearly 40% of sales at a typical Midas shop compared to only 5% at a SpeeDee shop," note Midas officials.
Feldman says Midas and SpeeDee will be operated separately.
"However, we will take advantage of the growth potential that will result from adding Midas brand services to SpeeDee shops, where practical. We also intend to test adding SpeeDee brand quick-lube services to Midas shops in areas where there are not shop overlaps."
Midas currently has 1,520 Midas shops located throughout all 50 states.