Midas Inc. has acquired 22 Midas automotive service shops in northern California in connection with a settlement between franchisee Maurice Glad and the California Attorney General and Bureau of Automotive Repair.
Midas paid about $5.8 million for the shops and subsequently re-franchised two of them to a new franchisee, bringing the net acquisition to 20 shops. Midas said it expects to re-franchise the rest of the stores as well.
According to Midas, Mr. Glad had been charged with violating state business and professional codes in a suit seeking $222 million in civil penalties and costs.
Midas said it was not named in the suit and worked closely with the California Attorney General's Office on acquiring these shops.
The transition was completed the weekend of Jan. 23-24 and the shops opened Jan. 25, Midas said. There was no interruption in services for consumers.
Midas will bring a high level of operational integrity and quality workmanship to customers of these Midas shops, said Midas Chairman and CEO Alan Feldman. All repairs and service are performed to the high industry standards of the Motorists Assurance Program, and employees have been trained by Midas and our vendor partners in the latest technical and customer service techniques.
Midas said it will honor the warranties on all service work performed in these shops while they were owned and operated by Mr. Glad. Customers with questions may contact Midas consumer affairs at www.midas.com or (800) 621-8545.
With the acquisition, Midas now owns and operates 29 Midas shops in California and 90 Midas shops in eight other states and Canada.
The remaining 1,490 Midas shops in North America are owned and operated by franchisees.
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