Pep Boys to Acquire Orlando Service and Tire Chain
October 13 2009 - 7:45AM
Business Wire
The Pep Boys – Manny, Moe & Jack (NYSE:PBY), the nation's
leading automotive aftermarket service and retail chain, today
announced that it had entered into a definitive agreement to
acquire the assets and assume the property leases of Florida Tire,
a trusted service and tire provider to customers in Orlando since
1987.
The $4.35 million acquisition is expected to close on October
30, generate annual sales of over $14 million and be accretive to
earnings in its first year of operations. In addition to offering
customers Pep Boys’ full range of automotive repair and maintenance
services, all 10 stores will feature a full assortment of Goodyear,
Dunlop and house-brand tires.
“This acquisition fits squarely within our stated strategy to
grow through Service & Tire Centers,” said CEO Mike Odell. “We
are very excited to add 10 new Service & Tire Centers that will
be able to immediately leverage the existing inventory, advertising
and distribution employed by our eight Supercenters currently
operating in Orlando. To be able to expand our relationship with
the Goodyear Tire & Rubber Company by featuring Goodyear-brand
tires in the Orlando, FL market makes the transaction that much
more attractive.”
With the addition of the these 10 locations, Pep Boys now
expects to open approximately 25 new Service & Tire Centers in
fiscal 2009, ahead of its original 15 store target. Through
individual location and small-chain acquisitions, Pep Boys is now
targeting the high end of its previously announced targets – 40 new
locations for fiscal 2010 and 80 for fiscal 2011.
Pep Boys has approximately 6,000 service bays within over 570
retail stores located in 35 states and Puerto Rico. Along with its
full-service vehicle maintenance and repair capabilities, the
Company also serves the commercial auto parts delivery market and
is one of the leading sellers of replacement tires in the United
States. Customers can find the nearest location by calling
1-800-PEP-BOYS or by visiting www.pepboys.com.
Certain statements contained herein constitute "forward-looking
statements" within the meaning of The Private Securities Litigation
Reform Act of 1995. The word "guidance," "expect," "anticipate,"
"estimates," "forecasts" and similar expressions are intended to
identify such forward-looking statements. Forward-looking
statements include management's expectations regarding
implementation of its long-term strategic plan, future financial
performance, automotive aftermarket trends, levels of competition,
business development activities, future capital expenditures,
financing sources and availability and the effects of regulation
and litigation. Although the Company believes that the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its
expectations will be achieved. The Company's actual results may
differ materially from the results discussed in the forward-looking
statements due to factors beyond the control of the Company,
including the strength of the national and regional economies,
retail and commercial consumers' ability to spend, the health of
the various sectors of the automotive aftermarket, the weather in
geographical regions with a high concentration of the Company's
stores, competitive pricing, the location and number of
competitors' stores, product and labor costs and the additional
factors described in the Company's filings with the SEC. The
Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent
events.
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