Less than a month after announcing the deal, Monro Inc. says it has completed the sale of its wholesale tire and distribution assets - which operated under the Tires Now banner - to American Tire Distributors Inc. (ATD).
The sale, completed June 17, includes Monro's seven wholesale locations, located in Kentucky, North Carolina, South Carolina and Tennessee. Those warehouses served more than 3,500 wholesale customer locations annually. ATD will pay $105 million for the assets.
Monro says the deal will allow it to focus on its retail operations, which includes more than 1,300 stores nationally, 865 of which sell tires. As part of the deal, ATD will distribute tires to Monro's 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.”
Broderick told investors in May that Monro's own distribution network was "too small" to compete with ATD, which has 130 distribution centers in the U.S. and Canada.
“Our Tires Now teammates have been a big part of our success,” Broderick noted. “We thank them for their dedication to our customers, and we wish them all the best in the future.”
