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 firm 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 Virginia's 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.
``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,'' said Robert Gross, Monro CEO.
The addition of Kimmel's stores in Maryland and Virginia brings the number of Monro stores to 550 in 19 states along the Eastern Seaboard 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.