Monro buying Tire Choice stores
ROCHESTER, N.Y. (July 24, 2014) — Monro Muffler Brake Inc. has struck a deal to buy 35 Tire Choice & Total Car Care stores in Florida, allowing the Rochester-based tire and auto service giant to enter the Florida market for the first time.
Monro disclosed the agreement to acquire during its first quarter earnings conference call with analysts. It didn't say whether the agreement is to buy Hennelly Tire & Automotive Inc. — the business owned by Dan and Diane Hennelly that operates the Tire Choice stores — or the stores individually.
Monro did not say what name it will use for these stores, but executives said Florida holds the potential for as many as 150 Monro stores.
Financial terms were not disclosed. The deal is expected to close in mid-August.
Hennelly Tire reported sales of $51 million in 2012, the last year for which data are available.
The Tire Choice stores are located principally in South Florida, along both the Atlantic and Gulf coasts, with significant concentrations in Fort Myers/Naples (seven stores) and the greater Tampa Bay metro areas (11 stores).
The Hennellys started their dealership in 2006, three years after Mr. Hennelly left Morgan Tire & Auto Inc., where he was president.
The dealership opened its 35th outlet in December 2012. Most of the Tire Choice stores are eight-bay outlets.
The Hennellys did not respond to a query for comment on the pending deal.
In addition, Monro disclosed it has completed the acquisitions of 19 tire and auto service stores in Michigan from Lentz USA and Kan Rock Tire & Auto Service, spending about $18 million in the quarter for acquisitions. Together the 19 stores generated $14 million in sales last year.
Monro now operates 960 tire and auto service outlets in 23 states, doing business as Monro Muffler Brake and Service, Mr. Tire, Tread Quarters Discount Tires, Autotire, Tire Warehouse, Tire Barn and Towery's Tire & Auto Care.
All of the existing stores are in contiguous states, stretching from Missouri to Maine and Michigan to South Carolina. The Tire Choice stores are roughly 450 miles south of the next nearest Monro locations in South Carolina.
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