ROCHESTER, N.Y. (Jan. 11, 2005) — Monro Muffler Brake Inc. is acquiring 10 more Mr. Tire retail tire stores in Maryland to go with 26 Mr. Tire stores the automotive service chain acquired in March 2004.
Monro, which has bought more than 70 retail tire stores in the past two years, has agreed to buy the 10 stores from Henderson Holdings Inc. The stores, located in southern Maryland, were part of the original Mr. Tire chain Monro bought last year from Atlantic Automotive Corp.
The 10 stores have combined annual sales of about $12.5 million, Monro said. They should contribute to Monro's earnings during the first year, the firm said.
The parties did not disclose the value of the transaction, which will be partly cash and partly Monro common stock, according to Monro. The deal should close by March, subject to customary terms and conditions.
“We expect the new stores not only to strengthen our geographic footprint but also to complement our existing tire stores,” Monro President and CEO Robert G. Gross said. “Monro's market position, purchasing power and marketing expertise can complement the stores' existing operating strengths and help to drive sales growth and expand margins at these new locations.”
During the past three years, Monro has seen its tire sales double to 20 percent of revenues from less than 10.