ROCHESTER, N.Y. (March 6, 2006) — Monro Muffler Brake Inc. has agreed to buy the assets of ProCare Automotive Service Solutions L.L.C. for about $14 million in cash.
The deal, which will be overseen by the bankruptcy court overseeing ProCare's Chapter 11 case, also includes $3.65 million debtor-in-possession financing to ProCare to be used for general working capital needs pending approval of the deal. Those funds will be repaid upon completion of the deal, Monro said.
ProCare operates 82 retail locations offering automotive maintenance and repair services in eight metro areas in Ohio, Pennsylvania and Kentucky. The stores generate about $50 million in annual sales, Monro said.
Monro expects to operate all of ProCare's existing stores as either service or tire stores.
In light of this deal, Monro and Strauss Discount Auto have amended their agreement, giving Monro the option to buy the remaining 87-percent stake in Strauss on or before Sept. 30. Monro bought 13 percent ownership in the chain with an option to buy an additional 20 percent by March 31 and the remaining 67 percent by April 1, 2007. Monro said “it would not be prudent” to attempt to large acquisitions at once, and ProCare's filing required “immediate attention so as not to lose the opportunity.”
“We are excited about the potential acquisition of ProCare, as its regional heritage and industry expertise would complement our existing business and enhance our market share,” said Robert Gross, president and CEO of Monro.