Monro Muffler Brake Inc. has inked a deal to purchase Buffaloâ€™s Broad-Elm Tire & Service Centers. Financial details of the deal, which is expected to close this weekend, were not disclosed.
John Van Heel, Monro executive vice president and chief administrative officer, said the seven privately owned stores post roughly $4.5 million in sales annually. The stores will open under Monro ownership Jan. 28 and will be rebranded as Mr. Tire stores within six months, he said. They will be the first Mr. Tire stores in the state.
â€œBroad-Elm has built a solid business,â€ Van Heel told the Rochester Business Journal in an interview today. â€œTheyâ€™ve served their customers well and have a good reputation. Those are the kinds of companies we look to add to our company.â€
Monro plans to keep Broad-Elmâ€™s store owners and employees on board, he added.
â€œWe do intend to invest in the stores, in equipment, inventory and signage,â€ he said. â€œAnd weâ€™ll make a broader selection of tire inventory available to their customers than theyâ€™ve had in the past.
â€œThe idea there is to take the good business that they built and grow it into the future.â€
Van Heel did not comment on whether Monro has plans to open Mr. Tire stores in the Rochester area, but noted the company looks to add stores through acquisitions in its existing markets.
â€œAdding stores within our footprint helps us be more convenient to customers and is also the most efficient in terms of our operations,â€ he said.
The Broad-Elm deal will be financed through Monroâ€™s existing credit facility, Van Heel said.
Monro, which operates 713 stores in 17 states, is slated to report third-quarter earnings Thursday. Shares of company stock (Nasdaq: MNRO) were trading up 20 cents at $17.20 mid-afternoon.
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