Les Schwab owners' group pursuing sale of company

BEND, Ore. — The owners of Les Schwab Tire Centers — the nation's sixth largest independent tire dealership — have decided to pursue the sale of the privately held company and have engaged Goldman Sachs Inc. to help find a buyer or buyers.

The decision by the company's board of directors and its shareholders — who are all relatives of founder Les Schwab — decided to seek new ownership for the company at this time to "position it for additional growth and success," according to Les Schwab CEO Jack Cuniff.

The decision was made "from a position of strength and based on the realities of being a family-owned business with five generations of family members," Mr. Cuniff said in a prepared statement.

"This company is strong," he said. "We believe this is the best way to honor Les' vision for the company and stores and support growth and innovation. Our owners are responsible stewards, and this decision was made after much consideration. It was not made lightly."

With 492 company-owned and licensed stores in 10 West Coast and Rocky Mountain states, Bend-based Les Schwab is considered the No. 6 independent tire retailer in the U.S., according to Tire Business research. The company's stores average nearly $3.6 million in retail-related sales.

The business also ranks among the nation's six largest commercial dealerships and retreaders with sales of nearly $340 million in 2018.

"After careful review and a lot of consideration, we concluded a new ownership group will help ensure future opportunity for our wonderful employees and secure continued success for the company as it grows," the owners' group said.

"We believe a new owner — one with deep experience and resources — will carry forward the Les Schwab vision far into the future."

The ownership group consists of Mr. Schwab's grandchildren and great-grandchilden, none of whom is involved in the dealership's day-to-day business. Les Schwab, who died in 2007 at age 89, and his wife Dorothy had two children, both of whom also have died: A son, Harlan, was killed in a car accident in 1971; and a daughter, Margie Denton, who had been chair of the company, died in 2005.

The 67-year-old dealership recently garnered a top rating for replacement tire service from J.D. Power and Consumer Reports Inc.

The J.D. Power honor was part of that enterprises's inaugural U.S. Aftermarket Service Index Study, which was based on responses from 12,554 vehicle owners surveyed in August-September 2019.

The Consumer Reports honor was based on survey responses from 30,000-plus members who had purchased tires during a period covering fall 2017 through fall 2018 and who gave Les Schwab top marks for its sales staff, free perks (such as tire mounting, tire balancing or tire rotation), installation quality, waiting area and easy checkout.