Tuffy Associates Corp., which operates Tuffy Auto Service Centers, has completed its acquisition of substantially all the assets of SMK Speedy International Inc.'s Car-X automotive repair business in the U.S.
Toronto-based SMK Speedy International grossed $30 million from the sale, including $2 million for consulting services. Tuffy paid $21 million in cash on closing and issued $3 million of five-year notes and $6 million of eight-year notes to complete the deal, SMK said.
The business being acquired consists of Car-X Service Systems Inc. (CSSI)-a franchiser of 185 automotive repair stores in the U.S.-and all but 12 of the stores of Discoverer Services Inc., which operates 50 of the 185 CSSI franchised stores. The franchises are concentrated in 10 midwestern states.
Tuffy said it will operate the Tuffy and Car-X businesses as separate brands to the consumer, while still ``leveraging the strength'' of the combined unit for the benefit of the franchisees and the customers of both brands. Tuffy Associates operates more than 250 company-owned and franchised Tuffy Auto Service Centers in 17 states. About 80-85 percent of Tuffy outlets offer tires, the company said.
Car-X's services include tires, oil, lube and filter, batteries, anti-freeze service, belts, wheel balancing, rack-and-pinion work, coil springs, CV joints, wipers and air-conditioning service.
SMK operates 129 company-owned and one franchise Speedy Auto Service stores in Canada and will continue to own 10 Car-X stores in the U.S.