TOLEDO, OH (March 6, 2002) — Tuffy Associates Corp., which operates Tuffy Auto Service Centers, has entered into an agreement under which a Tuffy subsidiary will purchase substantially all the assets of SMK Speedy International Inc.'s Car-X automotive repair business in the U.S.
The deal is expected to close within 90 days.
Privately held Tuffy operates 250 franchised and company-owned automotive service centers in 17 states.
The Car-X business being acquired by Tuffy consists of substantially all the operating assets of both Car-X Service Systems Inc. (CSSI)—a franchiser of 183 automotive repair stores in the U.S.—and all but 12 of the stores of Discoverer Services Inc., which operates 51 of the 183 CSSI franchised stores.
Car-X's franchise business is concentrated in 10 mid-western states in the U.S.
Tuffy said it plans to manage the two businesses as separate brands to the consumer, while still leveraging the strength of the combined entity for the benefit of the franchisees and the customers of both brands. Keenan Moran, Tuffy president and CEO, said the company's management “recognizes that the Car-X system brings with it a strong group of franchise dealers, an outstanding corporate staff and a well recognized brand. Car-X is typically one of the dominant players in each of the markets where they do business.”
Mr. Moran called Car-X “a well-managed organization throughout” and said the transaction will provide an “outstanding opportunity” for both auto repair companies.
Founded in 1970, Toledo-based Tuffy opened its first muffler shop in Detroit. Since then, the company has evolved to operate auto service centers that offer a broad range of services including the repair of brakes, exhaust, ride control, air conditioning, heating and cooling and starting and charging systems, and tire sales. The outlets also offer services such as regularly scheduled maintenance, oil changes and alignments.
The company is a member of the Motorist Assurance Program (MAP), and adheres to MAP's guidelines for vehicle inspection and parts replacement and repairs.