ROCHESTER, N.Y. — Monro Inc. has completed the previously announced sale of its Tires Now wholesale tire and distribution assets to American Tire Distributors Inc. (ATD), which in turn has secured a deal to supply Monro's 1,300-plus retail stores.
The deal — valued at $105 million — will allow Monro to focus its resources on its retail operations, which operate under a variety of retail brands, including Allen Tire, Car X Tire, Ken Towery's Tire & Auto, Monro Auto, MountainView Tire, Mr. Tire, Tire Barn, Tire Choice and Tire Warehouse.
"We are excited to have ATD support all of our retail locations through its industry-leading distribution program," Monro President and CEO Mike Broderick said.
"This is a game changer for our locations. We will now have access to a broader range of tire brands and sizes due to ATD's extensive secondary supplier partnerships. ATD's daily delivery of tires to our stores will allow us to provide outstanding guest service to our customers with the right tire at the right price."
The divestiture and subsequent supply deal with ATD also is expected to have significant impact on Monro's environmental, social, and governance efforts, the Rochester-based retailer said. As Monro's distribution fleet transitions to ATD, Monro anticipates a "meaningful reduction" in energy consumption, operational efficiencies and vehicle emissions.
The Tires Now wholesale network comprises seven distribution centers in Kentucky, North Carolina, South Carolina and Tennessee, servicing 3,500-plus wholesale customer locations annually. Monro built the Tires Now business in a number of acquisitions over the past few years.
Monro did not elaborate on its plans for the funds it's receiving from the divestiture.
The acquisition boosts ATD's network to over 130 distribution centers in the U.S. and and Canada. ATD did not say whether there's any overlap between the acquired D/Cs and its existing sites.
