ROCHESTER, N.Y. — Monro Inc. paid $17.4 million late last year to acquire 17 Fred Allen Tire stores in California from Fred Allen Enterprises Inc., according to Monro's third-quarter 10-Q form filed with the Securities and Exchange Commission.
Monro disclosed the agreement to buy the Fred Allen stores in late October, saying at that time it expected the stores to generate $20 million in annualized sales, with a 60/40 tires/auto service mix.
The price of roughly $1 million per store is in line with many acquisitions Monro has made over the past decade.
Monro is converting the stores, in 17 communities south of Los Angeles, to the Tire Choice retail brand it's using for its stores in the western U.S.
The acquisition is the only one Monro concluded during the first nine months of fiscal 2021, in line with the company's declaration early in the year as the COVID-19 pandemic unfolded that it would suspend such activity.
Prior to this, Monro's last acquisition was in November 2019, when it acquired 18 retail tire and automotive repair stores in Nevada and Idaho from Nevada Tire Holdings L.L.C. and Idaho Tire Holdings L.L.C.
Monro noted in its third-quarter earnings report it intends to continue pursuing its growth-by-acquisition strategy, with 10 potential acquisitions, with five to 40 stores, being evaluated.