Monro Muffler Brake Completes Vespia Tire Centers Acquisition
ROCHESTER, NY - The 24 Vespia locations purchased expand Monro's footprint in New Jersey and Eastern Pennsylvania, according to the company.
ROCHESTER, NY - Monro Muffler Brake, Inc. a leading provider of automotive undercar repair and tire services, announced that it is has completed the acquisition of Vespia Tire Centers Inc. ("Vespia") effective June 5, 2011. The 24 Vespia locations purchased, which generated net sales of approximately $36 million in 2010, expand Monro's footprint in New Jersey and Eastern Pennsylvania. The Company expects the acquisition to be slightly accretive in fiscal 2012, and the benefit of this acquisition is included in the Company's previously provided guidance for fiscal year 2012. The purchase was funded through the Company's existing line of credit.
The Company also announced that it has completed an amendment of its existing credit agreement that extends the maturity date by five years.
The amended agreement increases the amount of borrowings which the Company may obtain to $175 million. Under the new credit agreement, the Company may also request an increase in availability of funds of up to an additional $75 million. Based upon the Company's current performance, borrowings will bear interest at LIBOR plus 100 basis points.
"We are pleased to have completed both the Vespia transaction and to have extended our credit agreement," commented Robert G. Gross, chairman and chief executive officer. "The Vespia transaction fits well into our stated strategy of seeking value-priced acquisitions that strengthen our geographic footprint and expand our market share. We are currently integrating the Vespia stores into our highly efficient business model and expect to benefit from the established store density, strong brand recognition, and loyal customer base of this well-established chain. In addition, with increased borrowing capacity on very favorable terms, our amended credit agreement enhances our financial flexibility and ability to continue executing on our corporate strategy. Importantly, this exhibits the lending community's deep confidence in our prospects for growth."
In addition, the Company today announced that Mr. Gross will present at Oppenheimer & Co.'s Annual Consumer Conference in Boston. The Company's presentation is scheduled for Wednesday, June 29, 2011 at 2:50 p.m. ET.
A live webcast of the presentation will be available via the Investor Relations section of the Company's website (www.monro.com) and will be archived for two weeks.
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