ROCHESTER, N.Y. — Monro Muffler Brake Inc. has struck a pair of deals to acquire 20 auto repair stores in the U.S. Midwest, including eight operated by a Car-X Tire & Auto franchisee.
The stores, which are expected to generated $13 million in annualized sales, will fill in open markets in Illinois, Indiana and Michigan, Monro said. The stores' revenue mix is 95-percent auto service and 5-percent tires.
Monro declined to disclose the identities or locations of the stores to be acquired, saying the deals are not yet finalized. Financial terms of the deals were not disclosed.
Monro said it will continue to operate the eight Car-X Tire stores under the Car-X brand. Monro acquired the Car-X franchise business in April 2015.
The other 12 stores will be converted to the Monro Muffler Brake brand.
The acquisitions are expected to close in the second quarter and be breakeven to diluted earnings per share in fiscal 2018.
Monro disclosed the acquisitions in its first quarter earnings report.
Since acquiring the Car-X business, Monro has acquired 30 Car-X stores from franchisees, including 16 in Illinois and Iowa in February from NONA Inc. and its founder Parham Parastaran, who said the timing and buyout offer from Monro were simply right to sell the business his father founded in the 1980s
Other Car-X transactions include:
- One store in Indiana from NTI L.L.C. and four stores in Minnesota from Task Holdings Inc. and Autopar Inc. in July 2016;
- Three stores in Illinois and Indiana from an unnamed Car-X franchisee during fiscal 2016; and
- Four stores in Wisconsin from McMar Inc. in December 2015.
This latest deal will reduce the number of independently operated Car-X stores to 105, vs. 146 in 2015. Monro will own and operate 38 locations.
The acquisitions will push Monro's company-owned store network to nearly 1,140 locations.