ROCHESTER, N.Y. (July 30, 2002) – Monro Muffler Brake Inc. has sold the truck tire division and retread plant of the Kimmel Automotive unit it acquired in April to the unit's management team, led by Bob Ignozzi and Ron Rhodes, 28- and 27-year veterans, respectively, of Kimmel.
The assets sold include commercial tire centers in Pulaski and Jessup, Md., and an Oliver retread plant in Baltimore. The business was reincorporated as Maryland Truck Tire Service Inc., but the new owners will operate the business for the next six months as Kimmel Truck Tire, Mr. Rhodes said.
Kimmel's commercial activities accounted for about $5 million in sales in fiscal 2001, Mr. Rhodes said. The business operates 10 service trucks and has 40 employees, serving the Baltimore metro area and the Baltimore-Washington D.C. corridor. Besides Messrs. Ignozzi and Rhodes, president and secretary/treasurer, respectively, the new ownership team includes two other unnamed investors.
The truck tire business, although profitable, was outside of Monro's core business, a company spokeswoman said, and therefore it made sense to sell it. Monro did not divulge the financial details, other than to call it a “fair deal.” The proceeds of the deal will reduce Monro's acquisition cost for Kimmel, which was put at $9 million — $6 million in cash and the assumption of $3 million in debt – she said.
Kimmel Truck Tire sells primarily Yokohama and Hankook brands along with the Oliver retreads.