Monro to expand into California with Certified Tire acquisition

RIVERSIDE, Calif. — Monro Inc. is acquiring Certified Tire & Service Centers Inc., the nation's 27th largest independent tire dealership with 40 stores in California and $45 million in annual sales.

The acquisition, expected to close in the next three months, expands Monro's footprint to the West Coast and into a new state for the Rochester, N.Y.-based tire and auto service retailer. Financial terms were not disclosed.

Monro said it will continue to operate all of Certified Tire's stores in the San Francisco, San Diego and Los Angeles metro areas, as well as a distribution center in Riverside.

"We are thrilled to announce this acquisition, which provides us with a strong platform for further expansion into a dynamic and attractive region," Brett Ponton, Monro president and CEO, said.

"The diversification of our geographic footprint in California represents a key milestone in the execution of our growth strategy and we look forward to capitalizing on future opportunities in this market. We believe that the continued execution of our Monro. Forward initiatives will position us to more effectively and efficiently integrate this and other acquisitions, creating long-term shareholder value."

The acquisition will add about $45 million in annualized sales, representing a sales mix of 70 percent service and 30 percent tires, according to Monro.

Certified Tire President Jeff Darrow said Certified's No. 1 priority has always been "providing superior tire and automotive service to our valued customers.

"The diversification of our geographic footprint in California represents a key milestone in the execution of our growth strategy and we look forward to capitalizing on future opportunities in this market. We believe that the continued execution of our Monro. Forward initiatives will position us to more effectively and efficiently integrate this and other acquisitions, creating long-term shareholder value."

The acquisition will add about $45 million in annualized sales, representing a sales mix of 70 percent service and 30 percent tires, according to Monro.

Certified Tire President Jeff Darrow said Certified's No. 1 priority has always been "providing superior tire and automotive service to our valued customers.

"We are pleased to join the Monro family, which shares these core values and is committed to expansion and growth in our geography. I'm thrilled for what the partnership with Monro means for our exceptional employees and am proud to have selected an acquirer that will sustain the level of service that customers have come to expect from Certified Tire."

Mr. Darrow founded Certified Tire in 1997 and built it to the 40-store enterprise it is today through acquisitions and greenfield store growth. Among the acquisitions were deals in 2013 to take over 10 Scher Tire Inc. stores in the Los Angeles area and in 2010 the eight-store Rynck Tire & Auto Centers in the San Francisco area in 2010 and

On a combined basis, Monro acquisitions completed and announced to date in fiscal 2019 represent an expected total of $132 million in annualized sales.

Recent acquisitions include Rick Johnson Auto & Tire (13 retail locations in Florida, $12 million in annualized sales) and Jeff Pohlman Tire & Auto Service Inc. (five stores in Ohio, $5 million in sales).

It also has a pending acquisition in Louisiana of an as-yet-unidentified chain with a dozen locations.

Monro has 1,197 company-operated stores, 98 franchised locations, eight wholesale locations and three retread facilities in 28 states in the Mid Atlantic and New England regions and portions of the Great Lakes, Midwest and Southeast regions.