ROCHESTER, N.Y. (May 22, 2014) — Monro Muffler Brake Inc. has struck deals to acquire 19 tire and auto service stores in Michigan from Lentz USA and Kan Rock Tire & Auto Service and plans to convert the dealerships’ stores to its Monro Brake & Tire brand.
Financial terms of the pending deals were not disclosed, but Monro said the stores generated $14 million in sales last year and that it expects the acquisitions to be neutral to slightly accretive to earnings in the first year.
The stores will be Monro’s first in Michigan, the 22nd state where it does business. Monro said it purchased the real estate for all the stores being acquired.
Monro also signed a deal to buy two stores in New Hampshire that will be converted to the company's Tire Warehouse brand. They generated $2 million in sales last year.
The Lentz Auto stores being acquired are in Battle Creek, Grand Rapids (five locations) and Kalamazoo (four sites). Six other Lentz USA stores — in the Kentwood and Lansing areas owned by founder/CEO Gordon Lentz’s sons Brad and Greg — will continue to operate under the Lentz Auto Service Center name.
Flint, Mich.-based Kan Rock Tire has nine stores in central Michigan, in Bay City, Caro, Clio, Fenton, Flint (three locations), Lapeer and Saginaw. Its web site states the dealership has existed for more than 60 years.
Mr. Lentz and Kan Rock Tire President Tim Roche have not yet responded to Tire Business calls for comment.
Kan Rock became a Del-Nat Tire Corp. stockholder two years ago, a move Mr. Roche said at that time signified the dealership was moving more heavily into wholesaling.
Monro disclosed the acquisitions in its fiscal 2013 earnings report. Rochester-based Monro reported double-digit gains in operating and net income and sales for the year ended March 29.
How have local road conditions and/or road construction impacted tire repairs/automotive services at your dealership?
|We've seen an increase in business.||
40% (17 votes)
|Things are holding steady.||
50% (21 votes)
|Business is trending down.||
10% (4 votes)
|Total votes: 42|