Monro Inc. completed five acquisitions in recent weeks
Monro Inc. completed five acquisitions in recent weeks that comprise a dozen retail tire stores in five states.
The largest of the deals is for Jeff Pohlman Tire & Auto Service Inc., a five-store chain located in southwest Ohio. Monro is converting the stores — in Fairfield, Hamilton (two stores), Middletown and Oxford, Ohio — to its Car-X and Mr. Tire names. The acquisition was financed through an existing credit facility.
Monro had mentioned this acquisition in its second quarter earnings report without identifying the dealership, which it said generated $5 million in annual sales with a 70/30 auto service/tires mix.
The deal is expected to be break-even to diluted earnings per share in fiscal 2019, Monro said.
Monro also closed a deal in mid-October for Quality Tire & Auto Inc., a single-store Firestone-affiliated dealership in Willowbrook, Ill. It now operates under Monro’s Car-X brand.
Monro disclosed these acquisitions in its second quarter 10-Q filing with the Securities and Exchange Commission, in which it said it spent $11.7 million during the quarter on acquisitions, all financed through existing credit facilities.
Other recent acquisitions include:
- C&R Auto Service Inc. of Illinois, now operating as a Car-X outlet;
- Steele-Guiltner Inc., whose four stores, in Marion and West Memphis, Arkansas and Memphis, Tenn. (two locations), have been converted to the Car-X identity.
Still pending are deals in the Southeast for 13 retail locations with approximately $12 million in annual sales, split 65/35 service/tires, Monro said. The deal is expected to close during Monro’s fourth quarter, ending March 31, 2019.
In addition, a previously announced seven-store acquisition, representing $8 million in annualized sales, has been delayed due to an extended due diligence period. Monro now expects that deal to close in its fourth fiscal quarter as well.
On a combined basis, acquisitions completed and announced to date in fiscal 2019 represent an expected total of $80 million in annualized sales, Monro said.