Monro Muffler Brake, Inc. Receives Bankruptcy Court Approval to Acquire ProCare Automotive Service Solutions
ROCHESTER, N.Y., April 28 -- Monro Muffler Brake, Inc. a leading provider of automotive undercar repair and tire services, today announced that the United States Bankruptcy Court has approved the Company's acquisition of substantially all of the assets of ProCare Automotive Service Solutions, L.L.C. ("ProCare") for approximately $14,650,000 in cash. The Company had initially entered into an asset purchase agreement with ProCare on March 6, 2006, subject to an auction process and Bankruptcy Court approval. The transaction is expected to close on April 29, 2006.
"We are pleased that the Bankruptcy Court approved our acquisition of ProCare and look forward to integrating the 75 acquired locations and store employees into our existing store base in Ohio and Pennsylvania. Within the next week, we will have installed our point-of-sale system in all stores, trained store employees, delivered an initial inventory to each store and removed slower moving items," said Robert G. Gross, President and Chief Executive Officer. "The addition of ProCare will effectively fill in key geographic locations and increase our overall market share. Following our typical acquisition strategy, we plan to utilize our buying power, market position, and marketing and operational expertise to enhance the stores' existing strengths and help to drive sales growth and margin expansion at these new locations. We will give additional financial guidance when we release the Company's full year earnings later in May."
Monro Muffler Brake operates a chain of stores providing automotive undercar repair and tire services in the United States, operating under the brand names of Monro Muffler Brake and Service, Mr. Tire and Tread Quarters Discount Tires. The Company currently operates 625 stores and has 16 dealer locations in New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West Virginia, Virginia, Maryland, Vermont, New Hampshire, New Jersey, North Carolina, South Carolina, Indiana, Rhode Island, Delaware, Maine and Michigan. Monro's stores provide a full range of services for exhaust systems, brake systems, steering and suspension systems, tires and many vehicle maintenance services.