ROCHESTER, N.Y. (March 14, 2012) — Monro Muffler Brake Inc. has agreed to buy Kramer Tire Co., the Norfolk, Va.-based family-owned dealership with 20 retail, two commercial and two wholesale locations in the Norfolk area.
Terms of the deal were not disclosed. Kramer Tire will bring about $25 million in annual sales to Monro's ledger, the firm confirmed.
Monro did not say what identity it expects the stores to carry under its ownership. The Rochester-based auto service and tire retailer has 17 Tread Quarters stores in the general Norfolk/Newport News/Virginia Beach area, according to its online store locator.
Monro also did not indicate what might happen to Kramer's commercial stores, wholesale distribution centers or retread plant. Monro has no other commercial stores among its 803 retail locations.
Kramer Tire was founded in 1954 by Mickey Kramer, father of current president Ron Kramer, who did not respond to requests asking for comment on the deal.
The dealership company employs more than 200 people, according to its website.
Kramer Tire has been predominantly a Goodyear dealer throughout its 57 years in business. It also distributes Bridgestone, Continental, Michelin and other brands.
Once closed, this deal will be Monro's third acquisition of an independent tire dealership during its current fiscal year, which ends March 31.
Already Monro has spent $38 million on two acquisitions — $32.5 million for 22 Vespia Tire Centers locations in New Jersey and eastern Pennsylvania and $5.5 million for seven Terry's Tire Town Inc. retail stores in Ohio and Pennsylvania — that are delivering $45 million in annualized sales.
At the same time, Monor recently sold seven Monro Muffler stores on Long Island, N.Y., to Mavis Discount Tire.
During Monro's third quarter earnings conference call in January, Monro Chairman Robert Gross said the firm was evaluating as many as six acquisition targets with between five and 40 retail stores. He said the company expected to close on at least one or two this quarter that would yield up to $19 million in additional annual sales.