Monro Muffler Brake Inc. has completed its $14.7 million buyout of ProCare Automotive Service Solutions L.L.C. and is moving quickly to integrate ProCare's 75 outlets in Ohio and Pennsylvania into its own network of 625 outlets.
Monro completed the acquisition April 29 after the U.S. Bankruptcy Court for Northern Ohio approved its bid. Monro said it will continue to operate the stores for the short-term as ProCare Automotive while it evaluates whether to keep using that name or convert the stores to one of its other store brands-Monro Muffler Brake, Mr. Tire or Tread Quarters Discount Tires.
Monro initially entered into an asset purchase agreement with the bankruptcy court for ProCare on March 6, subject to an auction process and bankruptcy court approval. ProCare had filed for Chapter 11 bankruptcy protection March 5.
``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 planned 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.
Sixty-three of the 75 stores acquired are in Ohio. The original deal was for 82 stores, but in the case of seven locations the landlords didn't want to extend the leases, said Catherine D'Amico, CFO and executive vice president, finance.
The acquisition puts Monro into some new markets, like Toledo, Ohio, and supplements its position in others, like Columbus, Ohio, Ms. D'Amico said. The 12 stores in Pennsylvania are grouped in and around Pittsburgh, where Monro already has a dozen or more stores.
Monro acquired the assets of ProCare and some limited liabilities associated with employee benefits, Ms. D'Amico said. Monro took on 360 employees in the deal, including all the field sales personnel.
ProCare reported net sales last year of $62 million and a loss of $2.7 million 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.