Pep Boys has signed a definitive agreement to acquire the assets and assume the property leases of Orlando-based retailer Florida Tyre.
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The US aftermarket service and retail chain said the US$4.35m acquisition was expected to close on 30 October. It would generate annual sales of over $14m and be accretive to earnings in its first year of operations.
“This acquisition fits squarely within our stated strategy to grow through service and tyre centres,” said CEO Mike Odell.
“We are very excited to add 10 new centres that will be able to immediately leverage the existing inventory, advertising and distribution employed by our eight ‘supercentres’ currently operating in Orlando. To be able to expand our relationship… by featuring Goodyear-brand tyres in the Orlando market makes the transaction that much more attractive.”
Including the 10 Orlando locations, Pep Boys now expects to open about 25 new centers in fiscal 2009, ahead of its original 15-store target.
By means of individual location and small-chain acquisitions, Pep Boys is now targeting the high end of its previously announced goals – 40 new locations in fiscal 2010 and 80 in 2011.
