PHOENIX (June 12, 2000)—Morgan Tire & Auto Inc. has agreed to lease 28 CSK Auto Inc. outlets in the greater San Francisco Bay area, and will operate them as Wheel Works locations.
Morgan Tire, the third largest independent tire retailer in North America with 395 outlets in 15 states, announced a lease and purchase agreement with CSK Auto June 8. Once converted, the new locations will give Clearwater, Fla.-based Morgan Tire 53 stores in the San Francisco area for its Wheel Works chain, which it acquired Jan. 1, 1999.
CSK, a wholly owned subsidiary of CSK Auto Corp., will sublease facilities and sell certain assets at 28 auto service centers. Financial terms of the agreement were not disclosed.
CSK Auto Corp. is a specialty retailer of aftermarket automotive parts and accessories with more than 1,100 stores in 19 western states. CSK Auto has about 10,000 employees and reported sales of more than $1.3 billion in the last 12 months.
"This transaction is consistent with our strategic focus on auto parts retailing," said Maynard Jenkins, chairman and CEO of CSK Auto Corp. in a press release. CSK will reduce its involvement in servicing customers´ vehicles, he said, and will "focus more on expanding our commercial sales in the region."
Jim Curley, Morgan Tire´s western region vice president, said the agreement will "strengthen our market presence in the greater San Francisco Bay area."
Morgan Tire operates its stores under five different names—Olson Tire, Hibdon Tire Centers, Avellino´s Tire, Michel Tire and Wheel Works.