The owners of Mavis Discount Tire stores and Express Oil Change & Tire Engineers outlets have agreed to merge their automotive service and tire retailing outlets. The merger will create an independent automotive service platform of more than 830 outlets in the U.S.
Their combined networks will encompass approximately 710 company-owned stores and 120 franchise locations.
The transaction that combines Mavis Tire Supply Corp. and Express Oil Change LLC is expected to close in the first half of 2018. Financial terms were not disclosed.
When the deal is finalized, the combined company will be led by Mavis’ current co-chief executive officers, David and Stephen Sorbaro, and Express Oil Change’s chief executive officer, Ricky Brooks, who will be named executive chairman.
Express Oil Change is part of Golden Gate Capital, a San Francisco-based private equity investment firm. ONCAP, the mid-market private equity platform of Onex Corp., is selling its stake in Mavis to Golden Gate Capital, which, along with the Sorbaros, will be significant shareholders in the combined company.
Millwood, N.Y.-based Mavis Tire Supply does business as Mavis Discount Tire, STS Tire & Auto, Suburban Tire, Weldon Tire, and Mavis Discount Tire/Cole Muffler & Brake. Express Oil Change is based in Birmingham, Ala., and does business as Express Oil Change & Tire Engineers, Tire Engineers, Epperly Tire, Upton Tire, Trax Tire and Savannah Tire.
The companies issued a press release stating that “the merger of Mavis and Express unites two of the leading operators in the automotive service sector with a history of strong organic sales and service center growth. The combined company will operate more than 830 locations in 24 states across the East Coast, South and Midwest. Golden Gate Capital expects to continue to invest behind this scale platform to accelerate new unit development and to acquire additional automotive service providers in the combined company’s core and contiguous markets.”
David Sorbaro, co-chief executive officer of Mavis Discount Tire, said his company is “thrilled to partner with Express and Golden Gate Capital to create a leading company in the auto service industry in terms of service center footprint, financial strength and service quality. We have long admired Ricky and the entire Express team, who share the same values of integrity, trust and outstanding customer service. Express is the ideal partner as we continue to expand our footprint nationally. We’re grateful for ONCAP’s support throughout its ownership, and Stephen and I look forward to continuing to provide customers at Mavis and Express with the very best auto care in the industry.”
Ricky Brooks, chief executive officer of Express Oil Change & Tire Engineers, said the transaction “unites two customer-driven companies with a deep-rooted service ethic. Mavis has long been a leader in providing cost-effective and quality tires and service, and we are delighted for the opportunity to partner with them and benefit from each other’s expertise. I am confident that together, Mavis and Express will create an entirely new standard of auto care in the U.S.”
The merger is the second major move to expand geographic coverage by Mavis this year. The company acquired 69 retail stores in Georgia and Florida from Kauffman Tire Inc. in January.
Mavis Discount Tire has more than 430 service centers across seven states, including New York, New Jersey, Pennsylvania, Connecticut, Massachusetts, Georgia and Florida. In addition to its core offering of tires from over 20 major brands, Mavis offers a repair and maintenance services including brakes, alignments, suspension, shocks, and exhaust. Mavis was founded in 1972 by Marion and Victor Sorbaro and has roots dating back to 1949.
Express Oil Change & Tire Engineers provides car care services across approximately 400 company-owned and franchise locations in 19 states. Founded in 1979 and headquartered in Birmingham, Alabama, Express operating model offers quick oil changes, automotive maintenance and repair, and tire sales and services. Founded as an oil change provider, the chain entered the tire business in 2013, with the purchase of seven tire stores operated by Tire Engineers LLC, also of Birmingham. Today the company operates 230 Express Oil Change stores and 75 tire stores across 15 states.