COLUMBIA, Mo.—MFA Oil Co. has purchased Big O Tires L.L.C.'s interest in a partnership the companies formed seven years ago to operate Big O Tires stores in Missouri.
BORE/MPC L.L.C., a joint venture between MFA and TBC Corp.'s Big O Tires subsidiary, was formed in 1998 with a goal of opening up to 30 Big O outlets in Missouri.
The venture owns and operates 14 Big O Tires stores in Missouri and Arkansas—Camdenton, Columbia, Hollister, Jefferson City, Nixa, Osage Beach, Rolla, Springfield and St. Roberts, Mo., and Bentonville and Springdale, Ark.
MFA said it planned to open stores in Branson, Mo., and Fayetteville, Ark., this year. It did not provide details about the deal's purchase price.
Rusty Coats, MFA Oil director of retail tire operations, called it “a good deal” for the company. “Not only was the cost of the buyout favorable, but the single company ownership will allow us to be quicker and more flexible in our business decisions.”
Mark Fenner, MFA Oil president and CEO, added that “as Big O Tires continues to look for opportunities to expand, this purchase will make that process, and others, more efficient.
“And we're very fortunate to have Rusty leading the Big O Tires team with his 40-plus years of experience in the tire and automotive repair business.”
Kevin Kormondy, Big O's executive vice president and COO, said: “We are eager to continue our relationship with MFA,...and we are confident that this strategic decision will be beneficial for the Big O Tires brand and for MFA.”
BORE/MPC has been ranked as one of the top 100 independent tire dealerships in North America by Tire Business for the past 10 years.
MFA Oil is a farmer-owned cooperative organized in 1929 by Missouri farmers who wanted to be assured of a reliable supply of quality petroleum products at a fair price. Today MFA has more than 40,000 farmer member owners and is active in bulk delivery of fuel, lubricants and propane to residential, commercial and agricultural customers.
MFA Oil also operates four Jiffy Lube franchise locations in Missouri.