Leeds West Groups (LWG) and The Monteverde Group have entered into a joint equity partnership agreement regarding eight Big O Tires locations in Texas. The shops — located in the San Antonio and Corpus Christi markets — expand LWG’s footprint into a 16th state.
Greenwood Village, CO-based LWG is a management platform capitalized by private equity and family office funds. It acquires, owns and manages national automotive repair franchise brands across the United States. LWG also includes a national real-estate portfolio and outside national investment opportunities. It now has more than 90 automotive retail locations.
While financial terms of the deal were not disclosed, we do know that LWG is coming in as a “pure equity partner along with a strategic infrastructure infusion,” according to LWG. It will not have day-to-day operational control of this market.
The Monteverde Group, led by Chris Monteverde, will manage day-to-day operations, while LWG assumes back office infrastructure responsibility and “aggressive growth funding,” according to an announcement dated July 25.
“We have made the strategic move to start investing in world-class operators, and we firmly believe Chris and his team are that,” said CEO Judd Kyle Shader. “We believe we can enhance LWG growth avenues now across a whole new level of opportunity while leveraging our best-in-class, automotive-specific office, purchasing and software infrastructure — all alongside LWG’s current aggressive growth strategies in our current stores and current marketplaces.
“We have worked very hard setting up the LWG senior management team to be able to operate at a very high level with clear-cut structural responsibilities in all arenas, giving LWG now the ability to go after any and every multi-unit large-scale deal we see fit in the aftermarket automotive repair sector nationwide.”
Chris Monteverde noted the power of the Big O brand, stating that he believes the brand has huge potential in Texas and beyond. “The marriage of LWG now gives me and my team the ability to go after any growth opportunity nationally that I see fit for my Big O Tires team,” he added, “and allows us to capitalize on their automotive-specific office infrastructure, while allowing my team to deliver a high level of operational excellence.”
The Monteverde Group joined the Big O Tires organization in 2004 and now has 24 locations: eight in Texas and 16 in northern California. Chris Monteverde was Big O Tires’ 2017 “Franchisee of the Year” and the International Franchise Association “Franchisee of the Year” in 2018.