GREENWOOD VILLAGE, Colo. — Midas International and Big O Tires franchisee Leeds West Groups (LWG) has struck a deal to buy properties in Iowa, Illinois, Kansas, Missouri and Oklahoma where 17 of its Midas stores are located.
The deal — with a company controlled by the former owner of the Midas stores before they were acquired in 2017 by LWG — expands LWG's real-estate holdings to nearly a third of the 106 franchised businesses it operates.
Financial terms of the deal, which takes effect Dec. 1, are not being disclosed at this time.
The deal with SJD Realty Inc. secures the real estate of all 17 properties under the LWG umbrella in long-term leases, with acquisitions of all properties spread throughout the life of each lease, LWG said.
SJD is principal-owned by Steven Altheimer, the former owner of Auto Systems Experts (ASE), the Davenport, Iowa-based company that operated 42 Midas outlets when LWG acquired it from the ASE ESOP.
ASE is now a division of LWG.
Financial terms of the deal, still subject to customary closing requirements and regulatory approvals, were not disclosed.
This deal boosts LWG's ownership control of the ASE Division real estate to 50% and marks the company's 34th purchase of real estate in their automotive division within the last 24 months.
"This [move] continues to show our long-term investment commitment into the ASE team for the future," LWG CEO Judd Shader said. "The opportunity to secure over one-third of the ASE division real estate in one transaction is a big win for all parties involved."
With 106 stores in operation under the Big O Tires, Midas International and Speedee Oil Change & Auto Service brands and over $100 million in annual sales, LWG is ranked among the 15 largest independent automotive aftermarket service dealerships in North America.