GB provides automotive aftermarket repair service from about 65 retail locations in the Southwest.

John Daileader, managing partner at Greenbriar (Rye, NY), declined to comment on how the deal fits into the existing GB Auto Service platform. In addition to tire sales, the company offers oil changes, brake service, fluid exchange, factory-scheduled maintenance, shocks and struts, cooling system service, and battery work.

The companyвЂ™s recent expansion efforts included three new shops in 2017 and one more last year. Financial details of the transaction were not disclosed.ДЇounded in 1976, Evans operates 18 locations in the San Diego area, from Chula Vista in the south to Vista in the north and El Cajon in the east. GB Auto Service, a portfolio company of the Greenbriar Equity Group, has acquired Evans Tire & Service Centers. GB Auto Acquires Evans Tire & Service Centers вЂњManagement noted that current labor is generally overqualified, as 70 percent of Monro work orders typically require lower-skilled labor than is staffed,вЂќ the report states. Additionally, according to Jefferies, significant labor model changes are underway in an attempt to more closely match labor skills to work complexity. The report also states that significant internal systems change appears to be in process, as a major tablet initiative is in place to give store operators more real-time data on performance. вЂњNotably, just over 30 of the roughly 1,200 stores have been physically re-set, while the more customer-centric store operations model rolls out at a more rapid pace,вЂќ the analysts wrote. JefferiesвЂ™ report - which followed a day with MonroвЂ™s CEO and CFO - also asserts that the company remains in turnaround mode, with increased investment in both service and infrastructure. They added: вЂњWhile making MonroвЂ™s target of 10-percent annual growth via M&A more achievable by expanding the target markets, we do see some incremental execution risk in bi-coastal operations.вЂќ

вЂњGiven the significant size of the California fleet (roughly 15 million cars) and long average vehicle life span (limited corrosion), we see the potential for further West Coast expansion, particularly as more private equity/financial buyer backed M&A competition seems to be concentrated in the eastern U.S.,вЂќ analysts Bret Jordan, Mark Jordan and Ethan Huntley wrote in a March 21 report. Monro plans to continue to operate all of Certified TireвЂ™s locations.ДЄnalysts with Jefferies LLC view the acquisition as вЂњthe most adventurous M&A move in recent memory,вЂќ noting that prior Monro management limited growth to the predominantly East Coast chain to contiguous markets. вЂњWe believe that the continued execution of our вЂ Monro ForwardвЂ™ initiatives will position us to more effectively and efficiently integrate this and other acquisitions, creating long-term shareholder value.вЂќ вЂњThe diversification of our geographic footprint in California represents a key milestone in the execution of our growth strategy, and we look forward to capitalizing on future opportunities in this market,вЂќ Ponton stated. Monro President and CEO Brett Ponton said the acquisition provides the company with a strong platform for further expansion in the region. The move represents entry into a new state for Monro and expands the companyвЂ™s geographic footprint to the West Coast. The deal is expected to close in the first quarter of fiscal 2020 (for Monro, the three months ending June 30, 2019), and add roughly $45 million in annualized sales, representing a sales mix of 70 percent service and 30 percent tires. Financial terms of the transaction were not disclosed. (Rochester, NY) has signed a definitive agreement to acquire California-based Certified Tire & Service Centers, which has 40 retail locations in San Francisco, San Diego and Los Angeles, as well as a distribution center in Riverside. Monro Expanding Into California Via Acquisition Turnaround Continues

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