M&A activity reshaped multiple industry sectors in 2019

AKRON — A number of key mergers and acquistions throughout 2019 are reshaping the competitive landscape in multiple layers of the tire industry, according to Tire Business' assessment of the markets.

Monro Inc. and Bridgestone Americas/GCR Tires were the key players last year in the retail and commercial sectors, respectively, but from opposite ends of the spectrum, with Monro a key buyer and Bridgestone a net seller.

Monro added 102 retail locations throughout the country in a dozen separate deals, spending $100-plus million to acquire businesses with over $120 million in annualized sales potential.

The largest of these deals was the purchase of 40 Certified Tire & Service Centers retail locations and one distribution center in California in May 2019, but the Rochester, N.Y.-based company's buying spree also included established industry players such as Allied Discount Tire & Brake in Louisiana (12 stores), Rick Johnson Auto & Tire in Florida (13 stores) and Superior Tire & Service in Nevada and Idaho (18 stores).

Greenbriar Equity Group L.P. — d.b.a. GB Auto Service Inc. — was a close No. 2 in the retail sector, acquiring 57 tire and auto service locations in four transactions, and now is considered the 10th largest independent tire retail and auto service chain in the U.S. with 116 outlets.

GB Auto's acquistions throughout 2019 were: Evans Tire & Service Centers Inc. in California (17 stores); Lamb's Tire & Automotive Centers in Texas (18 stores); Driver's Edge Complete Tire & Automotive in Texas (11 stores); and Wilhelm Automotive & Tire in Arizona (11 stores).

The M&A wave continued into 2020, with Mavis Tire Supply striking a deal to take over 112 National Tire & Battery locations in four major metro markets from TBC Corp. and the family shareholders of Les Schwab Tire disclosing plans to find a buyer for the business, considered the sixth largest dealership in the U.S.Bridgestone was equally active throughout 2019 in terms of outlets that changed hands, except it was the seller, not the buyer.

Bridgestone divested 73 GCR commercial locations and a dozen Bandag-system retread plants in four transactions.

The restructuring continued into 2020, with the sale of 19 GCR locations in nine upper Midwest and Great Plains states to Pomp's Tire Service Inc.

The deal trims the GCR network to 70 locations in the U.S. and Canada, down from over 200 just a few years ago. Financial terms were not disclosed.

Goodyear — which competes with GCR with its Goodyear Commercial Tire & Service Centers network — expanded shortly before year-end with the acquisition of Raben Tire Co. of Evansville, Ind. The deal included 30-plus commercial and consumer tire and service locations and three retread plants.

In the manufacturing sector, there was just one acquisition of note — Group Michelin's $545 million purchase of Indonesian tire maker P.T. Multistrada. Cooper Tire & Rubber Co. announced its intention to buy out its minority partner in the Mexican manufacturing joint venture, Corp. de Occidente S.A. de C.V., a transaction it completed in January 2020.

In the auto service-related sector, Driven Brands Inc. expanded its quick lube business with five acquistions comprising 134 outlets in seven states: Advance Kwik Lube (25 locations), Express Automotive Group (28 locations) and Bolton Oil Change (6 locations) in Texas; Fast Track Oil Change Centers in Wisconsin (27 locations); and Super-Lube, a chain of 48 quick lube and automotive service centers in Alabama, Florida, Illinois, Indiana and Wisconsin.

Charlotte, N.C.-based Driven Brands' growth continued into 2020 with the acquisition of 39 Pro Oil Change shops in Canada.