ROCHESTER, N.Y. (May 1, 2006) — The U.S. Bankruptcy Court for Northern Ohio has approved Monro Muffler Brake Inc.'s $14.7 million buyout offer for ProCare Automotive Solutions L.L.C.
The court's action, disclosed April 28, clears the way for Monro to take over ProCare's 75 locations in Ohio, Pennsylvania and Kentucky and start integrating them into its own network of 625 outlets.
“The addition of ProCare will effectively fill in key geographic locations and increase our overall market share,” said Robert G. Gross, president and CEO, in a prepared statement. “Following our typical acquisition strategy, we plan to utilize our buying power, market position, and marketing and operational expertise to enhance the stores' existing strengths and help to drive sales growth and margin expansion at these new locations.”
Mr. Gross said Monro plans to install within a week its own point-of-sale system in all stores, train store employees, deliver an initial inventory to each store and remove slower moving items.
Monro did not say whether it will retain the ProCare name or convert the stores to one of its existing outlet names—Monro Muffler Brake, Mr. Tire or Tread Quarters Discount Tires.
Monro initially had entered into an asset purchase agreement with ProCare on March 6, subject to an auction process and bankruptcy court approval.
ProCare reported net sales last year of $62 million and a loss of $2.7 million in earnings before interest, taxes and depreciation, according to a motion filed with the bankruptcy court. ProCare sells Bridgestone, BFGoodrich, Firestone, General, Kelly, Monarch and Yokohama brands, according to its Web site.