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.
