Monro Muffler Brake Inc. has signed an agreement to acquire 36 Mr. Tire Inc. locations in Maryland and Virginia.
The transaction involves 26 tire outlets and 10 kiosks located in auto dealerships affiliated with Mr. Tire's parent company, Mile One Automotive.
The $29 million asset purchase will be financed primarily through Monro's existing revolving credit facility, according to Monro officials.
"The stores and kiosks we are acquiring generated approximately $50 million in sales last year," says Monro CEO and President Robert G. Gross.
Gross adds that Mr. Tire "has posted comparable store sales increases in excess of 12% in each of the past two years."
Monro has no plans to close any Mr. Tire locations, which will continue to operate under the Mr. Tire name.
"Mr. Tire is a profitable, well-run operation with talented management and employees. We look forward to this acquisition further strengthening our business and solidifying our platform for continued growth."
Mr. Tire is the 31st largest independent tire dealership in North America, according to Modern Tire Dealer data.
It sells Goodyear, Kelly, Dunlop, Pirelli, Hankook, Michelin, Yokohama, BFGoodrich, Continental, Akuret and other tire brands.
Monro also owns and operates 24 Kimmel Tire & Auto Centers stores, plus several Tread Quarters outlets, in the region.
Monro acquired Kimmel Automotive Inc.'s retail tire operations in spring 2002. (Kimmel also owned Tread Quarters.)
The Mr. Tire deal represents Monro's second tire dealership acquisition over the past 12 months.
Approximately one year ago, it acquired 10 retail outlets from Sumter, S.C.-based Frasier Tire Service Inc.
