CINCINNATI (Oct. 1, 2009) — AAA Allied Group Inc., a Cincinnati-based travel services company, has agreed to buy Bob Sumerel Tire Co.'s retail tire business, comprising 30 outlets in Indiana, Kentucky and Ohio, for an undisclosed sum.
Buying Bob Sumerel's retail tire and auto service business will continue AAA Allied's focus on strengthening its core automotive service offerings, the company said, and is considered an extension of its strategy to expand automotive services from the roadside to the garage.
The deal is expected to close Nov. 1, taking Bob Sumerel out of the retail business. AAA will continue to use the Sumerel Tire name and said in a prepared release it plans to expand the chain to additional markets in the future.
Erlanger, Ky.-based Bob Sumerel Tire also operates 13 commercial tire outlets in Kentucky, Ohio and Pennsylvania and four Bandag retread plants. They are not part of this deal.
“AAA and Bob Sumerel have long-standing traditions of offering world-class, reliable automotive services,” said James Pease III, chairman and CEO of AAA Allied Group. “Sumerel's operations and culture align perfectly with AAA, affording us the opportunity to expand services, value and benefits for members.”
All but four of Bob Sumerel's retail locations are in Ohio, primarily in the Cincinnati and Columbus metropolitan areas. Three outlets are in Kentucky and one in Indiana, in the greater Cincinnati metro area.
“This is a very exciting opportunity that highlights the strategic synergies between AAA and Bob Sumerel Tire & Service,” said Bob Sumerel, founder and chairman of Bob Sumerel Tire Co. “The combination of these two trusted and reputable brands will enhance the value of services available to existing and new Bob Sumerel customers and AAA members to provide growth opportunities for both businesses.”
AAA Allied Group said it provides travel, insurance, automotive and financial services to more than 1.4 million AAA members in seven states—Connecticut, Virginia, West Virginia, Kentucky, Ohio, Indiana and Kansas.
Bob Sumerel offers a complete range of automotive maintenance and repair services with ASE-certified mechanics along with a dozen name-brand tire lines.
The Bob Sumerel stores will continue to service all customers, a AAA spokeswoman said, but AAA members will receive AAA discounts.
AAA Allied also owns some travel agencies in the markets it services.