Monro Muffler Brake Inc. has sold the truck tire division and retread plant of the Kimmel Automotive unit it acquired in April to a group of investors led by two of the unit's top executives.
Bob Ignozzi and Ron Rhodes, 28- and 27-year veterans, respectively, of Kimmel, headed up the investors group that bought the business, which has been reincorporated as Maryland Truck Tire Service Inc. The new owners will operate the business as Kimmel Truck Tire for the next six months, Mr. Rhodes said.
The assets sold include commercial tire centers in Pulaski and Jessup, Md., and an Oliver retread plant in Baltimore. Kimmel's commercial activities accounted for about $5 million in sales in fiscal 2001, he 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 Rochester-based 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 Oliver retreads. The retread plant operates as Maryland Tire Co. It opened in 1956, and Kimmel acquired it in 1986, Mr. Rhodes said.