ROCHESTER, N.Y. (June 7, 2012) — Monro Muffler Inc. paid about $50 million for the retail assets it acquired recently from Kramer Tire Co. and Colony Tire Inc., according to the firm's fiscal 2012 10-K filing with the Securities and Exchange Commission.
The deals, for 20 Kramer stores in Virginia and 18 Colony retail locations in North Carolina and Viriginia, closed May 12 and June 2, respectively, the filing states.
In earlier announcements, Monro said it expects the 38 acquired stores to generate about $50 million in annualized sales and contribute to its bottom line starting in the first year of ownership.
The acquistion costs are roughly in line with previous Monro buyouts: i.e., about $1 or less for each dollar of anticipated revenue.
Monro is converting the Kramer stores and two Colony Tire stores in Virginia to its Tread Quarters retail identity and the 16 North Carolina Colony locations in the Raleigh/Durham and Greenville areas to its Mr. Tire Auto & Service Centers brand. Monro also plans to convert five Monro Muffler & Brake stores in those areas to Mr. Tire.
As part of the deal to buy the Colony Tire retail stores, Monro sold Colony two commecial tire stores and a retread plant it had acquired in the Kramer deal. It did not disclose the value of that transaction.
Additionally, Monro has signed an asset purchase agreement to acquire certain retail tire and automotive repair stores; this transaction is expected to before the end of June and will be financed through the company's existing bank facility.