Monro Muffler agrees to buy ProCare Automotive, amends Strauss buy-out deal
Monro Muffler Brake Inc. has agreed to purchase the assets of ProCare Automotive Service Solutions LLC for $14 million in cash. ProCare, which has filed Chapter 11 bankruptcy, is the seventh largest independent tire store chain in North America with more than 80 outlets, according to Modern Tire Dealer research.
ProCare's stores generate $50 million in annual sales. They are located throughout Ohio, Pennsylvania and Kentucky.
"We are excited about the potential acquisition of ProCare, as its regional heritage and industry expertise would complement our existing business and enhance our market share," says Monro CEO and President Robert Gross.
"It fits squarely with our stated strategy to seek attractively pricd acquisitions that expand our reach within our geographic footprint."
Monro anticipates operating all of ProCare's retail locations as either service or tire stores.
"The transaction is subject to certain bidding procedures which will be outlined by the bankruptcy court."
In related news, Monro and Strauss Discount Automotive have agreed to amend terms of their buy-out deal so Monro will now have the option to acquire the remaining 87% of Strauss on or before Sept. 30, 2006.
Monro purchased 13% stake in Strauss last October. It had the option of acquiring an additional 20% stake on or before March 31, and the remaining 67% anytime before April 1, 2007.