ROCHESTER, N.Y.—Monro Muffler Brake Inc. has secured deals to acquire Ken Towery's Tire & Auto Service of Louisville, Ky., Enger Auto Service & Tires of Mentor, Ohio, and Tire King Complete Car Care of Durham, N.C.
The deals, expected to be completed before year-end, comprise 48 stores representing more than $70 million in annual sales and will push Monro past 950 stores overall, including more than 400 tire-focused stores.
Financial details of the purchases have not yet been disclosed.
The deal for Ken Towery's was expected to close Dec. 16, while the others were expected to close on Dec. 30, Monro said.
Monro will convert the stores to its Mr. Tire retail identity, according to CEO John Van Heel.
Ken Towery's owner Ken Towery, Enger Auto owner Jim Enger and Tire King President Jerry Horne had not replied by presstime for this issue to Tire Business' requests for comment.
Mr. Van Heel said the sellers “generally believe that completing a sale in 2012 would likely save them taxes versus completing a sale in 2013, so it was an added incentive this calendar year. The long-term trend is that most independent tire dealers don't have a succession option within their company, so we expect acquisition opportunities to continue.”
The acquisition of Ken Towery's puts Monro into Kentucky for the first time, with 24 stores, plus three in southern Indiana in the greater Louisville metro area.
Monro is “pursuing opportunities to expand our store count through acquisitions and fill-in greenfield stores in all of our markets, including Kentucky and Tennessee,” Mr. Van Heel said, referring to the acquisition of three stores in Tennessee in the recently completed acquisition of Tire Barn Warehouse in Anderson, Ind.
Enger operates a dozen stores in northern Ohio and Tire King has nine stores in and around Durham, N.C. Mr. Enger reportedly retains ownership of one store.
These conversions will boost the Mr. Tire presence in northern Ohio to 28 stores, Mr. Van Heel said.
Monro acquired the real estate for eight of the 12 stores there.
In North Carolina, the number of Mr. Tire stores will grow to 31. Monro is buying the real estate for four of the nine stores.
The Tire Barn acquistion encompassed 31 stores and more than $60 million in annual sales. Monro is retaining the Tire Barn Warehouse name for those stores.
Monro said it will be able to conclude these acquisitions, plus that of Tire Barn Warehouse, through existing financing arrangements.
Besides Mr. Tire and Tire Barn Warehouse, Monro's tire-focused stores go to market as Tread Quarters Discount Tires (primarily South Carolina), Autotire (Missouri) and Tire Warehouse (New England).