BEND, Ore. — Meritage Group L.P., a California- and New York-based investment group, has struck a deal to buy Les Schwab Tire Centers, the nation's sixth largest independent retail tire dealership with 438 stores.
The sale is expected to be completed by year-end; the purchase price is not being disclosed. Les Schwab posted sales of $1.9 billion in 2018, the last year for which financial results are available.
The owners of Les Schwab Tire Centers — who are all relatives of founder Les Schwab — disclosed plans in December to sell the company, which is in its 68th year of existence.
According to Les Schwab CEO Jack Cuniff, "The decision to sell has always been about securing the long-term success of the company. Meritage Group has a history of preserving culture and values while growing its companies with investment over time.
"This is a great fit," he added, "and aligns well with Les' vision and all we have built together."
Meritage Group is a family-owned private investment firm with assets under management in excess of $10 billion. Founded by noted investor and climate activist Nat Simons in 1997, the group pursues investment strategies in public and private equity, credit and real estate.
Meritage Group has offices in San Francisco, Greenwich, Conn., and New York City.
Mr. Simons manages Meritage Group, an investment management firm that was spun out of Renaissance Technologies, where he was a principal. He also is co-founder, together with his wife, Laura Baxter-Simons, of Sea Change Foundation, a private family foundation dedicated to addressing global climate change.
The owners' group cited the complexities of operating a family-owned business with five generations of family members and the company's strong position as factors prompting its decision.
"As our family grows and ages, it has been very important to us to remain committed and aligned behind our Grandfather's vision," the owners' group said. "While it was hard to make the decision to sell the company, we are very confident Meritage Group will continue that commitment and alignment and will build on all we have accomplished over the past 68 years.
"The company's long-term outlook, the opportunities for employees and the tremendous importance of our customers will remain as Grandpa always imagined," the group added.
Aubrey Barth, managing director of Meritage, called Les Schwab Tires an "ideal investment" and said, "the company's exceptional employees and programs, strong financials and respected, customer-focused brand set it up for success for years to come."
Last year Les Schwab Tire Centers was rated the No. 1 replacement tire service business in the U.S. by J.D. Power, the market data and analytics firm.
Alex Magaro, co-president and senior managing director of Meritage, said: "It only took reading 50 pages of Les' book to realize the company was a great cultural fit for Meritage."
Les Schwab's operations and management team will remain unchanged, the companies said.
Besides being a major retail dealership, Les Schwab Tires is considered the sixth largest commercial tire dealership in the U.S. and the No. 8 truck tire retreader.
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