BURNSVILLE, Minn. (July 7, 2000) — Morgan Tire & Auto Inc. has agreed to acquire Burnsville-based Team Tires Plus Ltd., a $220 million, 140-store chain, for an undisclosed sum. The transaction is expected to close within 30 days.
With the purchase, Clearwater, Fla.-based Morgan Tire, owned by Larry Morgan, will become the second-largest retail dealership in North America with $745 million in sales and 540 stores located in 24 states. The combined entity is expected to sell 6.5 million tires in 2000.
"Lots of people in the tire industry have talked about consolidating the various independent tire store chains," said Tom Gegax, co-founder, head coach and chairman of Tires Plus, "but no one has created a company as large or as successful as Larry Morgan."
Mr. Gegax will become chairman of the combined organization and will provide vision, strategy and industry knowledge to the firm, according to Mr. Morgan. "Tom´s coaching and guest concepts will continue to be a part of our corporate structure," Mr. Morgan said.
All of Tires Plus´ outlets will continue to do business under that name, according to Mr. Gegax.