Monro Muffler Brake to use revolver borrowings to fund Mr. Tire acquisitions

By Sara Rosenberg

New York, Feb. 10 - Monro Muffler Brake Inc. plans to use its revolver to primarily fund the acquisition of 36 Mr. Tire locations in Maryland and Virginia from Mile One Automotive for about $29 million, according to a company news release.

The transaction is expected to close in March.

"The acquisition represents an exciting opportunity to increase our market share in the mid-Atlantic region, particularly in the important Baltimore, Maryland market. Mr. Tire has a dominant presence, strong brand recognition and I believe the best performance in that market," said Robert G. Gross, Monro's president and chief executive officer, in the release.

"The stores and kiosks we are acquiring generated approximately $50 million in sales last year, and we anticipate an EBITDA contribution of between $5 million and $6 million in the first year. As such, we expect the acquisition to be immediately accretive to earnings and to contribute approximately $0.06 to $0.10 per share during fiscal 2005, which begins March 28, 2004."

Monro Muffler is a Rochester, N.Y., operator of a chain of stores providing automotive undercar repair and tire services.

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