Monro Muffler Brake continues to make acquisitions. The Rochester, NY-based company has signed a definitive agreement to purchase 17 stores from Tuffy Associates Corp. Thirteen of the stores are in the Milwaukee area, which expands Monro’s footprint into a new contiguous market, and four stores are in South Carolina, helping Monro’s to fill in an existing market.
Annual sales for these stores are approximately $9 million.
The Wisconsin locations will be rebranded as Monro, while the South Carolina shops will be rebranded as TreadQuarters. The closing is expected to occur sometime this month.
Monro has shown a propensity to take advantage of its strong balance sheet and the increased acquisition opportunities the current challenging economic environment presents. Already this year, Monro has acquired the retail stores of Kramer Tire (20 locations in Virginia) and the retail stores of Colony Tire (18 locations in North Carolina).
According to BB&T Capital Markets, Monro has signed non-disclosure agreements with eight potential acquisition candidates, each representing operations between five stores and 40 stores. “We believe that the combination of broad industry challenges and uncertain tax treatment in 2013 may make 2012 a particularly attractive year for sellers to monetize their business,” wrote BB&T analysts Bret Jordan and David Kelley in a July 27 report on Monro.