CSK Auto to Sublease Morgan Tire & Auto Shops in SF Bay Area
9 June 2000
PHOENIX - CSK Auto Corporation announced today that its wholly owned subsidiary, CSK Auto, Inc., the largest retailer of automotive parts and accessories in the Western United States and one of the largest such retailers in the country, has entered into a definitive agreement to sublease facilities and sell certain assets associated with 28 automobile service center locations in the Greater San Francisco Bay area to Morgan Tire & Auto, Inc., which does business as Wheel Works in that region. The financial terms of the transaction, which is subject to customary contingencies, were not disclosed. In addition, CSK Auto said that it will expand its current commercial sales relationship with Morgan Tire & Auto. "This transaction is consistent with our strategic focus on auto parts retailing. We are pleased and excited to have a market leader like Wheel Works and Morgan Tire as our neighbor at these 28 locations and believe they will deliver the level of service that service center customers need and want. With this transaction, we have reduced our involvement in the servicing of customers' vehicles and can now focus more on expanding our commercial sales in this region," said Maynard Jenkins, Chairman and Chief Executive Officer of CSK Auto Corporation. Jim Curley, Morgan Tire's Western Region Vice President, said, "These service locations fit perfectly with our current operations and strengthen our market presence in the Greater San Francisco Bay area." The service centers will be operated by Morgan's Wheel Works Division, which will have a total of 53 service centers in that market. This transaction brings Morgan Tire's total to 395 locations throughout the U.S. Morgan Tire, the third largest independent tire and auto service dealer in North America, operates in 15 states as Olson Tire, Wheel Works, Hibdon, Avellino's, Michel Tire, and Performance Discount Tire. CSK Auto Corporation is the parent company of CSK Auto, Inc., a specialty retailer in the automotive aftermarket. As of April 30, 2000, the Company operated 1,138 stores in 19 states under the brand names Checker Auto Parts, Schuck's Auto Supply and Kragen Auto Parts.