September 25, 2009 (FinancialWire) — Monro Muffler Brake, Inc. (NASDAQ: MNRO), a provider of automotive undercar repair and tire services, announced two tire store acquisitions.

The company has signed a definitive agreement to acquire the assets of Tire Warehouse Central, a privately-owned tire store chain serving five New England states (Tire Warehouse). Monro has also completed the acquisition of the assets of Midwest Tire & Auto Repair, a small independent tire chain in northwest Indiana (Midwest Tire). Separately, the company provided a business update for the second quarter of fiscal 2010.

John Van Heel, president, commented, “We believe that the acquisitions of both of these businesses fit well into our stated strategy of seeking value-priced transactions that expand our market share. We are delighted to add Midwest Tire and Tire Warehouse to the Monro family and look forward to capitalizing on the significant opportunities presented by the addition of 50 stores, nearly $60 million in sales, and an additional 500,000 tire units. Coupled with our acquisition of Autotire earlier this year, we have added 76 stores and $90 million of annual sales or approximately 18% top line growth through acquisitions so far this year.”

The total purchase price for Tire Warehouse, which consists of 40 tire stores and six tire franchise locations, is $34 million. The purchase price includes real estate assets for 12 store locations and a distribution center located in Swanzy, New Hampshire. Tire Warehouse, which focuses solely on tires and related services, generated annual net sales of approximately $53 million in 2008. Management expects the Tire Warehouse business to be slightly accretive in the first twelve months following the acquisition and $0.06 to $0.08 accretive in the second twelve months of Monro ownership. The transaction is expected to close in early October. Following the acquisition and initial integration of the business, the company intends to further leverage the Tire Warehouse store presence and distribution facilities by converting 50 of its existing Monro service stores in these markets to its Black Gold format. Black Gold is a program designed to increase sales in Monro’s service stores, particularly of tires and related services.

The total purchase price of the Midwest Tire business was $2 million. Midwest Tire consists of four tire locations in northwest Indiana that generated annual net sales of approximately $6 million in 2008. Management expects that Midwest Tire, which will be converted to the Tire brand name, will operate at a breakeven level in the first twelve months following the acquisition.

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