Mavis, Express Oil merging; to control 830 retail outlets

MILLWOOD, N.Y. — Mavis Discount Tire and Express Oil Change & Tire Engineers, two of the largest retail tire dealerships in the U.S., have agreed to merge their operations, creating a group with more than 830 locations in 24 states across the East Coast, South and Midwest.

The deal is being brokered by Golden Gate Capital, a San Francisco-based portfolio company that acquired Express Oil Change in 2017. Financial terms are not being disclosed.

Upon closing, the combined company will be led by Mavis' current co-CEOs David and Stephen Sorbaro, with Express Oil Change CEO Ricky Brooks becoming executive chairman.

"We are thrilled to partner with Express and Golden Gate Capital to create a leading company in the auto service industry in terms of service center footprint, financial strength and service quality," David Sorbaro said, calling Express Oil the "ideal partner as we continue to expand our footprint nationally."

He also said Mr. Brooks and the Express Oil team "share the same values of integrity, trust and outstanding customer service."

Mr. Brooks, who took over the then-fledgling Express Oil enterprise in 1988, said, "This exciting transaction unites two customer-driven companies with a deep-rooted service ethic. Mavis has long been a leader in providing cost-effective and quality tires and service, and we are delighted for the opportunity to partner with them and benefit from each other's expertise.

"I am confident that together, Mavis and Express will create an entirely new standard of auto care in the U.S."

To effect the deal, Mavis' principal owner Oncap Group will sell its ownership stake to Golden Gate Capital, which, together with the Sorbaros, will be "significant shareholders" in the combined company.

Golden Gate Capital manages more than $15 billion of capital assets, including Bob Evans Restaurants L.L.C., Red Lobster Hospitality L.L.C., Eddie Bauer L.L.C. and Signet Jewelers (Zales).

Josh Cohen, a Managing Director at Golden Gate Capital, said, "For years we have observed both Mavis' and Express' tireless dedication to their customers and operational excellence," Golden Gate Managing Director Josh Cohen said, "and we're elated to have the opportunity to partner with the Sorbaros and Ricky. Uniting these strong, recognized brands will combine best practices and result in an acceleration of their current industry-leading growth."

Evan Hershberg, a managing director at Oncap, added: "During our ownership David and Stephen did a fantastic job expanding on their world-class platform. We're proud of what we accomplished together and we wish Mavis, Express and Golden Gate Capital continued success."

Toronto-based Oncap — the mid-market private equity platform of Onex Corp. — has owned a 46-percent share of Mavis Tire since 2014.