Monro Inc. (Rochester, NY) has acquired eight retail locations from the Sawyer Tire Co., filling in an existing market in Missouri. These shops are expected to add roughly $8 million in annualized sales, representing a sales mix of 50 percent service and 50 percent tires. The Sawyer Tire acquisition closed in the second quarter of fiscal 2019 (three months ending around Sept. 30, 2018) and is expected to be breakeven to diluted earnings per share in fiscal 2019.
Monro also has signed a definitive agreement to acquire seven undisclosed shops filling in existing markets. They are expected to add approximately $8 million in annualized sales, representing a sales mix of 60 percent service and 40 percent tires. This deal is expected to close in the current quarter and anticipated to be breakeven to diluted earnings per share in fiscal 2019.
Monro president and CEO Brett Ponton told analysts participating in the company’s July 26 quarterly report conference call that the company continues to capitalize on favorable accretive acquisition opportunities in the marketplace.
“Acquisitions announced and completed thus far in fiscal 2019 represent $63 million in annualized sales,” Ponton said. “And, our M&A pipeline remains robust, with over 10 [non-disclosure agreements] signed, with opportunities ranging from five to 40 stores.”
During the fiscal first quarter ended June 30, 2018, the company spent approximately $27.50 million on acquisitions, including one- to four-store acquisitions completed as part of Monro’s greenfield expansion strategy.
Monro added 19 company-operated stores and closed five locations during the first quarter.
As of June 30, 2018, Monro had 1,164 company-operated stores and 98 franchise locations — compared to 1,119 company-operated stores and 114 franchise locations as of June 24, 2017.