ROCHESTER, N.Y. (April 8, 2002)—Monro Muffler Brake Inc. has completed its acquisition of Kimmel Automotive Inc., saying it paid $6 million in cash and assumed $3 million in debt for the Baltimore-based business that reported $29.5 million in sales last year.
Monro said it expects the acquisition to begin to contribute to earnings per share during fiscal 2003, with the contribution to increase in subsequent years.
Monro took over Kimmel's 34 retail stores—15 Kimmel Tire & Auto Centers in metro Baltimore and 19 Tread Quarters Discount Tire outlets in the Virginia Tidewater area—along with two commercial tire stores, a retread plant and Kimmel's wholesale division.
The acquisition was financed through Monro's existing bank credit facility.
“With this acquisition, we have substantially increased our presence in the mid-Atlantic market,” said Robert G. Gross, CEO of Monro Muffler Brake, in a prepared statement. “The new locations bring our total number of stores to 550, and increase sales by over 10 percent.
“I am confident that the planning and preparation by the Monro and Kimmel employees and vendors will result in a rapid and smooth integration of the two companies,” Mr. Gross said. “Monro is now a stronger organization with the critical mass to compete even more successfully in the national automotive service arena.”
The addition of Kimmel's stores in Maryland and Virginia brings the number of Monro stores to 550 in 19 states along the Eastern Seabord and into the Midwest as far as Indiana. Monro´s stores offer exhaust system, brake system, steering and suspension system and other vehicle maintenance services. Tires represent about 10 percent of Monro´s sales, whereas Kimmel derives nearly 60 percent of its retail sales from tires and related services.