Monro buys 7 Appalachian Tire retail stores in 4 states

ROCHESTER, N.Y. — Monro Inc. has acquired seven Appalachian Tire retail stores in Kentucky, Ohio, Virginia and West Virginia and plans to rebrand them as Mr. Tire Auto Service Centers.

Financial terms of the deal were not disclosed. Monro earlier had announced an acquisition of this size but declined to identify the stores being bought.

It did say at that time, however, it expected the stores to add roughly $7 million in annualized sales, split 45/55 auto service/tires.

The stores, operated by Charleston, W.Va.-based Appalachian Tire Products, are located in Athens, Ohio; Prestonsburg, Ky.; Roanoke, Va.; and Beckley, Charleston, Hurricane and Lewisburg, W.Va.

Appalachian Tire continues to list 11 predominantly commercial-oriented locations within its five-state operating footprint — Kentucky, Pennsylvania, Tennessee, Virginia and West Virginia.

The dealership, founded in 1947, now lists commercial trucking, industrial, mining, OTR and farm as its areas of business. Appalachian Tire operates one Goodyear Authorized Retread plant.

Appalachian Tire President Jennifer Dial said the deal "really made sense" for her company, which is 80-percent commercial oriented, with a strong emphasis on the mining industry.

"With their resources, Monro can make more with those stores than we could," Ms. Dial said, noting that Monro agreed to take on all of the stores' employees.

"My dad always used to say we should able to sell everything from a wheelbarrow tire to a 57-inch mining tire," she said. "But times have changed."

Monro said the acquired stores fill in markets in states where it already has more than 250 locations.

In its third quarter earnings report, Mono disclosed it had acquired six retail tire and auto repair locations in December and January:

• A Car-X Tire & Auto store in Whiting, Ind., operated by franchisee MLR Inc. It continues as a Car-X location.

• Two stores in Montoursville and Williamsport, Pa., operated by TriGar Tire & Auto Service Center L.L.C. The Montoursville location was converted to a Monro store while the Williamsport store operates under the Mr. Tire moniker.

• Three stores in Pennsylvania from Valley Tire Co. Inc. All three were converted to the Mr. Tire brand.

During the first nine months of fiscal 2018, Monro spent $15.7 million to acquire 32 retail tire and auto service centers in 11 separate transactions. The acquisitions were financed through the company's existing credit facility.

Monro reported sales of $4.6 million and $8.2 million, respectively, for the quarter and nine months ended Dec. 23 for the businesses acquired.

The company also said it expects to open 13 "greenfield" locations in the current fiscal quarter, which would bring to 27 the number of greenfield openings in fiscal 2018. Monro defines greenfield as either a new construction location or an acquisition of up to four stores.