The $14 million cash deal gives Monro 82 additional retail locations in Ohio, Pennsylvania and Kentucky.
“We are excited about the potential acquisition of ProCare, as its regional heritage and industry expertise would complement our existing business and enhance our market share,” said Robert Gross, Monto’s president and CEO. “Moreover, it fits squarely with our stated strategy to seek attractively priced acquisitions that expand our reach within our geographic footprint.”
Monro said it plans to operate the ProCare stores as either service or tire stores, and plans to retain all of ProCare’s employees.
As a result of this deal, Monro has reworked its agreement with Strauss Discount Automotive, giving Monro until Sept. 30 to buyout the remaining 87% of Strauss that it does not already own. Monro purchased a 13% stake in Strauss in October 2005 and had the option to acquire an additional 20% on or before Mar. 31, and the remaining 67% anytime prior to Apr. 1, 2007.
“We are pleased with our progress on the Strauss transaction and look forward to having Strauss Discount Automotive join Monro,” said Gross. “I have always said that it would not be prudent to attempt two large acquisitions simultaneously and the timing of ProCare’s filing required our immediate attention so as not to lose the opportunity. I am thrilled with the prospect of further accelerating our growth in fiscal 2007.”
Monro operates 626 stores and 16 dealer locations in the eastern U.S. under the names of Monro Muffler Brake and Service, Speedy Auto Service by Monro, Mr. Tire and Tread Quarters Discount Tires.