Monro Enters into California with 40-Store Acquisition
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Monro, Inc. 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.
“We are thrilled to announce this acquisition, which provides us with a strong platform for further expansion into a dynamic and attractive region,” says Brett Ponton, president and CEO of Monro. “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, said he was “thrilled” about the partnership and what it means for Certified Tire employees.
“As Certified Tire has expanded its footprint throughout California, our priority has always been providing superior tire and automotive service to our valued customers,” he said. “We are pleased to join the Monro family, which shares these core values and is committed to expansion and growth in our geography. “
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.
