Monro paid $50M for Kramer, Colony assets
ROCHESTER, N.Y.—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 purchase 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 buy certain retail tire and automotive repair stores. The deal is expected to be concluded before the end of June and will be financed through the company's existing bank facility.
Big O marks 50 years, honors dealer Brooks
ANAHEIM, Calif.—TBC Corp.'s Big O Tires brand recognized Kevin Brooks, the owner of eight Big O stores on Colorado's western slope, at its recent annual convention with its “Point of Light” award—given to the individual who embodies the spirit of Big O Tires with commitment, values and dedication.
“Kevin Brooks…embodies the spirit of Big O Tires and its programs,” Kevin Kormondy, executive vice president, COO of Big O Tires, said. “We have built a supportive foundation to help our franchisees achieve success, as Kevin has, and it is our goal to continue this pattern while strategically offering franchise opportunities throughout the Midwest and Western U.S.”
Big O celebrated its 50th anniversary at the convention in Anaheim, held the week of May 21. During the event Big O “laid the foundation for growing the franchise,” TBC said.
The convention was attended by nearly 700 franchisees, managers, vendors and corporate participants, TBC said.
“The focus of our convention and message to our franchisees highlights the history of Big O Tires and how it has evolved over the past 50 years to meet the needs of consumers,” Mr. Kormondy said.
“Our franchisees are the life blood of this great organization. It is their dedication to the Big O system that makes this company the success it is today. It is an honor to showcase their commitment and success.”
Big O Tires encompasses more than 400 franchised stores in the U.S., along with a dozen or so associated dealers in western Canada.
New store openings push DTC count to 830
SCOTTSDALE, Ariz.—Discount Tire Co. Inc. has opened 10 stores since late February, including three each in California and Texas, pushing the dealership's store count to 830 in 23 states.
New stores in Alamogordo, N.M., and Bryan, Texas, opened in mid-May.
The Alamogordo store, DTC's 18th in New Mexico, and its 11-person staff is managed by 11-year employee Dale McDaniel.
The Bryan store is Discount's 220th in Texas. Thirty-year veteran Mike McAleese manages the store and its 13 employees.
The other new Texas stores are in Corpus Christi and Roanoke. The store in Corpus Christi, DTC's fourth in that city, is managed by Suart Martin, a 10-year Discount Tire veteran who oversees a staff of 12. The Roanoke store and its nine employees are managed by Ron Soucek, a 23-year DTC veteran.
In California, where DTC's 130 stores are badged America's Tire, the firm opened stores in Corona, Fontana and Palm Springs. Nineteen-year veteran Josh McCartney manages the Palm Springs store and its 14 employees; Chris-topher Gatrel, a 17-year veteran, manages the Fontana store and its nine employees; Jerry Davis, who's been with DTC for 24 years, manages the Corona store and its staff of 13.
In the Pacific Northwest, DTC opened stores in Hillsboro, Ore., and Vancouver, Wash., in the greater Portland metropolitan area. The America's Tire-badged stores push Discount's presence in Oregon and Washington to 10 and 31 stores, respectively
Both new stores will open with eight employees. Art Lind-quist, a two-year DTC employee, will manage the Hillsboro store, while Rex Harper, a six-year DTC veteran, was named to manage the Vancouver store.
In Oklahoma, DTC opened a store in Del City, its 10th location in that state. Matthew Bassett, a six-year DTC veteran, manages the store and its eight employees.
Michigan's Kan Rock Tire joins Del-Nat
FLINT, Mich.—Kan Rock Tire, an automotive repair and tire dealership with nine locations in and around Flint, has become a stockholder in wholesale distributor Del-Nat Tire Corp.
The move signifies that Kan Rock, a retail tire dealership since 1965, is expanding into wholesale services, according to Tim Roche, president of Kan Rock. The dealership was founded in 1950 by Mr. Roche's father as a chain of gas stations. The business added tires in 1965 and complete auto repair services in 2008.
Del-Nat Tire has a network of 78 tire dealers and distributors, who are stockholders in the company. Kan Rock is the fourth new stockholder this year, according to Randy Gaetz, Del-Nat vice president of sales and marketing.
“The Del-Nat program fits well within our needs because we are in the midst of diversifying to include a wholesale division,” Mr. Roche said. “This gives us something more we can use in that venture and exclusivity because we're now able to carry the Delta brand. We're proud to be on board.”
Stockholders are offered protected territories under one or more of the brand names Delta and National passenger, light-truck and SUV tires; Chaparral light truck lines; Akuret commercial tires for farm equipment; and OTR tires for large machines.
Kan Rock offers BFGoodrich, Bridgestone, Cooper, Dean, Falken, Goodyear, Hankook, Michelin, Starfire and Uniroyal brands, according to the dealership's website. It often advertises itself as offering “rock-bottom prices.”
TGI buys wholesaler Tire Warehouse Inc.
MIAMI—Tire wholesaler Tire Group International L.L.C. (TGI) has acquired Tire Warehouse Inc. (TWI) in Miami in a move to strengthen TGI's position in the OTR market segments.
Financial terms of the agreement were not disclosed. TGI said it has integrated TWI's operations, inventory and selected staff at its headquarters/warehouse facility in Miami.
TWI was focused on the construction, industrial, forestry, earthmoving and agricultural segments since its founding in 1977. TWI owners Harvey and Rick Malove will continue to be active under the new arrangement.
TGI said this business partnership will allow TGI to strengthen its position in the evolving OTR tire market segments and expand its product offering with brands such as Titan and Alliance.
TGI CEO Tony Gonzalez said his company's backing by Transportation Resources Partners (TRP) has positioned TGI “to capitalize on strategic opportunities while continuing to grow our core business.”
TGI claims to be South Florida's largest independent tire wholesaler, carrrying more than 40 brands of tires, including its own private labels Astro, Cosmo, Industar, Luna and Orion.
Separately, TGI has struck a distribution agreement with Taiwan's Kenda Rubber Industrial Co. Ltd. covering Puerto Rico. The deal covers Kenda's complete line, including trailer, turf, ATV, industrial, passenger, SUV and light truck tires. TGI will offer both direct factory shipments as well as fill-ins from its Miami facility.
Bob Phoenix, Kenda USA's vice president of sales automotive division, said TGI's distribution platform is “ideally suited to reach the Caribbean, and TGI's distribution facility in Miami further enhances our ability to offer a fill-in program to keep the market properly supplied.”
Financial terms were not disclosed.