Monro, Inc. Announces Sale of Tires Now Assets to American Tire Distributors
17 June 2022 - 9:30PM
Business Wire
Deal includes new agreement for ATD to provide
tire distribution to Monro’s 1,304 stores
Monro, Inc. (Nasdaq: MNRO) (“Monro”), one of the largest
independent auto service and tire dealers in the United States, has
completed the previously-announced sale of its wholesale tire and
distribution assets to American Tire Distributors (“ATD”). Monro’s
wholesale tire locations, operating as Tires Now, included seven
facilities in Kentucky, North Carolina, South Carolina, and
Tennessee which serviced more than 3,500 wholesale customer
locations annually.
ATD is one of the largest independent suppliers of tires to the
replacement tire market in North America, with more than 130
distribution centers in the United States and Canada.
The deal will allow Monro to focus its resources on its retail
operations at more than 1,300 stores nationwide. As part of the
transaction, Monro entered into a supply relationship with ATD for
ATD to distribute tires directly to Monro’s retail stores.
“We are excited to have ATD support all of our retail locations
through its industry-leading distribution program,” said Mike
Broderick, president and chief executive officer of Monro. “This is
a game changer for our locations. We will now have access to a
broader range of tire brands and sizes due to ATD’s extensive
secondary supplier partnerships. ATD’s daily delivery of tires to
our stores will allow us to provide outstanding guest service to
our customers with the right tire at the right price.”
“Our Tires Now teammates have been a big part of our success,”
he continued. “We thank them for their dedication to our customers,
and we wish them all the best in the future.”
The sale of Monro’s tire distribution assets is also expected to
be a significant step forward in Monro’s environmental, social, and
governance (ESG) efforts. As Monro’s distribution fleet transitions
to ATD, Monro anticipates a meaningful reduction in energy
consumption, operational efficiencies, and vehicle emissions.
Forward-Looking Statements
In addition to historical information, this press release
includes certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The words
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intends," "outlook," "may," "might," "plan," "possible,"
"potential," "predict," "project," "should," "would," and similar
expressions may identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are
subject, to risks and uncertainties. Such statements include both
implied and express statements regarding the completion of the
transaction and timing for closing, the benefits expected from the
transaction, including increased operational efficiencies and
Monro’s current expectations and projections relating to its future
performance and business following closing. Such forward-looking
statements are not guarantees of future performance and are subject
to risks, uncertainties and other factors that may cause the actual
results, performance, or achievements of Monro to differ materially
from the historical results or from any results expressed or
implied by such forward-looking statements. Risks that could cause
actual results to differ materially from those in the
forward-looking statements include, without limitation, the risks
that the transaction will not close in the timeframe expected, or
at all; the risk that an event, change or other circumstances could
give rise to the termination of the proposed merger; the risk that
a condition to closing of the merger may not be satisfied on a
timely basis or at all; the risk that the expected benefits and
effects of the transaction will not be achieved; the risk that the
businesses will not be integrated successfully; the risk that the
anticipated synergies from the transaction may not be fully
realized or may take longer to realize than expected; the risk that
a governmental entity may prohibit, delay or refuse to grant
approval for the consummation of the transaction; the risk of
litigation related to the proposed transaction; the continuing
effects of the COVID-19 pandemic and the impact thereof on Monro’s
business, financial condition and results of operations; the risk
that Monro’s business will suffer due to uncertainty related to the
transaction; and other general economic and business risks. Monro
disclaims any obligation or duty to update or modify these
forward-looking statements.
About Monro, Inc.
Monro, Inc. (NASDAQ: MNRO) is one of the nation’s leading
automotive service and tire providers, delivering best-in-class
auto care to communities across the country. With a growing market
share and a focus on sustainable growth, the company generated
approximately $1.4 billion in sales in fiscal 2022. It continues to
expand its national presence through strategic acquisitions and by
opening newly constructed stores. Across more than 1,300 stores and
9,000 service bays nationwide, Monro offers customers the
professionalism and high-quality service they expect from a
national retailer, with the convenience and trust of a neighborhood
garage. Monro’s highly trained teammates and certified technicians
bring together hands-on experience and state-of-the-art technology
to diagnose and address customers’ automotive needs to get them
safely back on the road. For more information, visit
www.monro.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220617005066/en/
Felix Veksler Senior Director, Investor Relations
ir@monro.com
Colleen Carter Director, Internal Communications
colleen.carter@monro.com
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