Monro's next purchase is in the works
Following record financial results, Monro Muffler Brake Inc. is at it again. The company is expected to announce another major acquisition later this year.
Who is the target is anyone's guess, but Modern Tire Dealer can give you a big hint (see below).
First the financials. For its fourth quarter ended March 31, 2012, Monro recorded net income of $10.5 million on net sales of 171.7 million. Both were records.
Monro posted record net income of $54.6 million on record net sales of $686.6 million for its 2012 fiscal year. Its income-to-sales ratio was nearly 8%, compared to 7.2% for its fiscal 2011.
In its 2012 fiscal year report under the heading "Acquisitions update," Monro wrote that it had completed its acquisition of Kramer Tire Co.'s 20 retail stores on April 1, 2012, and was on the verge of completing its purchase of Colony Tire Inc.'s 18 retail stores. Then came this teaser:
"The company has also signed a Letter of Intent on one more similar-sized transaction, which it anticipates closing in the second quarter of fiscal 2013."
For Monro, 2Q 2013 runs from July 1 to September 30, 2012.
Monro Muffler Brake operates 820 automotive undercar repair (Monro Muffler Brake and Service) and tire (Mr. Tire Auto Service, TreadQuarters Discount Tire, Autotire Car Care Centers and Tire Warehouse) stores in New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West Virginia, Virginia, Maryland, Vermont, New Hampshire, New Jersey, North Carolina, South Carolina, Indiana, Rhode Island, Delaware, Maine, Illinois and Missouri.