ROCHESTER, N.Y. — Monro Inc.'s latest wave of pending acquisitions includes 14 Superior Tire & Service stores in Nevada and four in Idaho, along with nine unidentified stores in California.
Monro disclosed the pending acquisitions in its second quarter earnings report issued Oct. 23 but initially did not identify the businesses' identity. The company later confirmed to Tire Business they are the Superior Tire stores.
The stores being acquired in California remain unidentified. Monro said it expects the deals to close during the current quarter, which ends in late December, and they are expected to be breakeven to diluted earnings per share in fiscal 2020, which ends in March 2020.
Financial terms were not disclosed.
Monro described Superior Tire as a business that would add approximately $20 million in annualized sales, with a sales mix of 75% service and 25% tires. It's a predominantly Goodyear-affiliated dealership that is part of the Goodyear Tires & Service Network.
In California the businesses represent $25 million in annualized sales, with a sales mix of 55% service and 45% tires.
Monro also has completed the previously announced acquisitions of eight stores in Louisiana, expanding the firm's presence there to 20 stores. These locations are expected to add approximately $12 million in annualized sales, representing a sales mix of 50% service and 50% tires.
Buying Superior Tire & Service will expand Monro's footprint into two more states and complement the company's acquisition in March of Certified Tire & Service Centers Inc., the Riverside, Calif.-based dealership with 40 stores in the Golden State.
The deal to buy Superior Tire in Nevada will make Monro the fifth owner of those stores in the past decade.
Current owner Nevada Tire Holdings took over the assets of Superior Tire in 2013 after the unexpected death in late 2012 of the business' former owner, California tire dealer Bruce Scher, who in 2009 had acquired nine of 16 stores operating in the Las Vegas area under the Superior Tire name.
Mr. Scher bought the stores from Goodyear, which had assumed operation of the 16-store Superior Tire chain earlier that year after Mountain View Tire & Service of Rancho Cucamonga, Calif., had opted out of a management contract deal to operate the stores in partnership with Goodyear.
Goodyear and TBC Corp. co-owned the 16-store chain, so they first had to work out between them what they wanted to do with the dealership. In the end, Goodyear retained nine of the stores and sold them and the Superior Tire business to Mr. Scher for an undisclosed sum.
TBC kept seven stores and turned over the leases on those locations to existing Big O Tires Inc. franchisees.
Nevada Tire acquired the four former Miracle Tire & Auto stores in Idaho in 2018 and converted them to the Superior Tire brand.
On a combined basis, acquisitions completed and announced in fiscal 2020 represent an expected total of $120 million in annualized sales, Monro said.