ROCHESTER, N.Y. — Monro Inc. paid $62.1 million to buy Mountain View Tire & Service Inc., a considerable premium over the prices the Rochester-based retailer has paid for similar acquisitions in the past.
Monro also disclosed the 30 stores included in this acquisition will continue to operate under the Mountain View Tire name, instead of the Tire Choice retail brand it's using for its stores in the western U.S.
The value — disclosed in Monro's first quarter fiscal 2022 10Q filing with the Securities and Exchange Commission — calculates to over $2 million per store for the 30 stores acquired.
Monro's acquisitions prior to this have averaged closer to $1 million per store. Monro said it financed the acquisition of Rancho Cucamonga, Calif.-based Mountain View Tire — which closed April 25, 2021 — through its existing credit facility.
By comparison, Monro paid $17.4 million in fiscal 2020 for Fred Allen Tire Co. and its 17 stores throughout Southern California, or roughly $1 million per store.
The Fred Allen Tire stores, which are being converted to the Tire Choice brand, are expected to generate $20 million in annualized sales, with a 60/40 tires/auto service mix.
The acquired Mountain View Tire assets represented $45 million in annualized sales, in a 70/30 auto service/tires revenue mix, Monro said earlier. In in the 10Q filing, Monro said sales related to the acquisition totaled $7.9 million for the period from acquisition date through June 26, 2021.
Monro also said the acquisition resulted in goodwill related to, among other things, growth opportunities, synergies and economies of scale expected from combining Mountain View's business with its own, "as well as unidentifiable intangible assets." All of the goodwill is expected to be deductible for tax purposes.
With 1,300 retail tire and auto service locations throughout the U.S., Monro is considered the largest such independent retailer in the nation, according to Tire Business calculations.