Monro, Inc. Signs a Definitive Agreement to Acquire California-Based Certified Tire & Service Centers, Inc.
March 21 2019 - 7:30AM
Monro, Inc. (Nasdaq: MNRO), a leading provider of automotive
undercar repair and tire services, today announced that it has
signed a definitive agreement to acquire California-based Certified
Tire & Service Centers, Inc.
The acquisition includes Certified Tire’s 40
retail stores located in San Francisco, San Diego and Los Angeles,
California and one distribution center located in Riverside,
California. The acquisition represents entry into a new state for
Monro and expands the Company’s geographic footprint to the West
Coast. Monro will continue to operate all of Certified Tire’s
locations.
Brett Ponton, President and Chief Executive
Officer of Monro said, “We are thrilled to announce this
acquisition, which provides us with a strong platform for further
expansion into a dynamic and attractive region. The diversification
of our geographic footprint in California represents a key
milestone in the execution of our growth strategy, and we look
forward to capitalizing on future opportunities in this market. We
believe that the continued execution of our Monro. Forward
initiatives will position us to more effectively and efficiently
integrate this and other acquisitions, creating long-term
shareholder value. Importantly, we would like to extend a warm
welcome to the Certified Tire team who will be joining Monro.”
Jeff Darrow, President of Certified Tire,
stated, “As Certified Tire has expanded its footprint throughout
California, our priority has always been providing superior tire
and automotive service to our valued customers. We are
pleased to join the Monro family, which shares these core values
and is committed to expansion and growth in our geography.
I’m thrilled for what the partnership with Monro means for our
exceptional employees and am proud to have selected an acquirer
that will sustain the level of service that customers have come to
expect from Certified Tire.”
The transaction is expected to close in the
first quarter of fiscal 2020, and add approximately $45 million in
annualized sales, representing a sales mix of 70% service and 30%
tires. On a combined basis, acquisitions completed and announced to
date in fiscal 2019 represent an expected total of $132 million in
annualized sales.
About Monro, Inc.
Headquartered in Rochester, New York, Monro is a
chain of 1,197 Company-operated stores, 98 franchised locations,
eight wholesale locations and three retread facilities providing
automotive undercar repair and tire sales and services. The Company
operates in 28 states, serving the MidAtlantic and New England
regions and portions of the Great Lakes, Midwest and Southeast. The
predecessor to the Company was founded by Charles J. August in 1957
as a Midas Muffler franchise. In 1966, Monro began to diversify
into a full line of undercar repair services. The Company has
experienced significant growth in recent years through acquisitions
and, to a lesser extent, the opening of newly constructed stores.
The Company went public in 1991 and trades on The Nasdaq Stock
Market under the symbol MNRO.
CONTACT: Kim RuddExecutive Assistant(585) 784-3324
Investors and Media: Melanie DambreFTI Consulting(212)
850-5600
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