Monro Muffler Brake Inc. (MNRO) completed the acquisition of Autotire Car Care Center for $10 million, which will provide an opportunity to bolster its presence in St. Louis, Missouri and the surrounding area.
“A low risk, low cost, and high reward opportunity, the Autotire transaction fits perfectly into our stated strategy of seeking value-priced acquisitions,” said President John Van Heel.
The company also said that all the acquired stores will continue to operate under the existing brand name. Autotire posted annual revenue of $31 million in 2008.
Monro, which has benefitted from the economic downturn as customers chose to repair existing cars rather than buy new ones, bought Autotire from Am-Pac Tire Distributors Inc., a division of American Tire Distributors.
MNRO, a Zacks #3 Rank (“Hold”), is down about 1.5% on lower-than-usual volume of approximately 224,000, compared to average daily volume of about 268,000.
“MNRO” Free Stock Analysis: Buy? Sell? Hold?
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