Monro Muffler Brake, Inc. has completed its
purchase of Vespia Tire Centers, Inc.
The 24 stores, which generated some $36 million in
sales last year, are now operating under Monro’s
Mr. Tire banner. The acquisition expands Monro’s
footprint in New Jersey and Eastern
Pennsylvania.
Vespia was established 35 years ago. “We never
anticipated passing the ‘torch’ on to another
business, but over the past years we have been
approached several times,” says a statement of
thanks to its patrons posted by the Vespia family.
“Mr. Tire came to us in April with a package that
would be most desirable for our employees, our
customers and our family.”
The Vespias go on to note that “you will continue
to see the same smiling faces at our locations and
you will have the same expert technicians working
on your vehicles. Mr. Tire will honor all of the
Vespia warranties.”
“The Vespia transaction fits well into our stated
strategy of seeking value-priced acquisitions that
strengthen our geographic footprint and expand our
market share,” says Robert G. Gross, Monro’s
chairman and CEO.
“We are currently integrating the Vespia stores
into our highly efficient business model and expect
to benefit from the established store density,
strong brand recognition and loyal customer base of
this well-established chain,” he reports, adding
that Monro has completed an amendment to its
existing credit agreement that extends the maturity
date by five years and increases the amount of
borrowing that the company can obtain to $175
million. It can also request an increase in the
availability of funds of up to an additional $75
million.
Gross says that “with increased borrowing capacity
on very favorable terms, our amended credit
agreement enhances our financial flexibility and
ability to continue executing on our corporate
strategy. Importantly, this exhibits the lending
community’s deep confidence in our prospects for
growth.”
In addition, Gross will be presenting a program at
the June 29 Oppenheimer & Co. Annual Consumer
Conference in Boston. A live webcast of the event
will be available at Monro’s Internet site
beginning at 2:50 p.m. Eastern Time.
For more information, visit www.monro.com and www.vespiatires.com.
