New Big 10 Tire Stores Inc., the seventh largest independent tire dealer chain in the U.S., according to the Modern Tire Dealer 100, has been sold to Pep Boys – Manny, Moe & Jack.
An affiliate of Sun Capital Partners Inc., a private investment firm specializing in leveraged buyouts and investments in market-leading companies, sold Big 10 Tires to Pep Boys. Terms of the transaction were not disclosed.
Big 10 operates 85 stores throughout the Southeast. The company sells Michelin, Bridgestone, BFGoodrich, Firestone, Uniroyal, Fuzion and Radar tires and provides a full range of automotive services. It holds a leadership position in its core markets in Alabama, Florida and Georgia.
Big 10 was acquired by a Sun Capital affiliate in November 2006. In June 2009, the company initiated a restructuring process by filing for bankruptcy due to the consumer-led economic downturn. The assets of Big 10 were subsequently acquired out of the bankruptcy estate by an affiliate of Sun Capital.
Since the acquisition, Big 10 has optimized its cost structure and footprint to remain competitive during both the recession and an era of rising fuel prices, Sun reports. In addition, Big 10 has expanded its product offering, realigned the management structure to improve operating efficiencies, and launched a campaign that further strengthened the Big 10 brand in its core markets. As a result, Big 10’s performance has improved and the company has grown through a targeted reopening of select stores that were closed during the bankruptcy and restructuring process.
“We are delighted by the progress Big 10 has made. The company has maintained its position as one of the leading aftermarket tire and service retailers able to weather even the most challenging market conditions,” says Peter Lee, a vice president at Sun Capital Partners. “We are confident that Big 10 will continue to perform and grow under its experienced new owners.”
“This acquisition furthers our stated strategy to grow through Service & Tire Centers,” says Mike Odell, president and CEO of Pep Boys. “We are very excited to add this many new Service & Tire Centers in a single transaction and to improve our market density in Orlando, Atlanta and the Gulf area of Florida and Alabama."
For more on Pep Boys, see Pep Boys earn $36.6 million, plans to open MORE stores from our April report.