Sun Auto Tire Looks to Expand Into Other Regions

The rate at which Sun Vehicle Tire & Service Inc. has been obtaining tire dealerships and car support chains “has been pretty immediate,” suggests Chris Garman, the Tucson, Ariz.-primarily based company’s vice president of business enterprise development.

With a new majority operator, Los Angeles, Calif-dependent Leonard Green & Companions (LGP), invest in-ups are predicted to continue on at a brisk clip.

And they won’t be confined to the southwestern United States, Sunlight Car Tire’s standard domain, he adds.

In late-November, Sun Vehicle Tire announced that it is acquiring Plaza Tire Support Inc., a 70-location dealership based in Cape Girardeau, Mo. The deal is predicted to shut on Dec. 31.

In October, Sun Automobile Tire picked up 16  auto services areas in the Pacific Northwest – all based mostly in Washington.

Extra acquisitions in the southeastern component of the U.S. – like Hogan & Sons, a 7-area, Virginia-based tire dealership that Sun Vehicle obtained in September – also are feasible.

The Hogan & Sons acquisition was Sun Auto’s very first East Coastline transaction.

The dealership “comes with a terrific leadership workforce and we sense we can grow” in the Virginia sector in excess of the next number of decades, says Garman.

“We really like the prospect in that industry and we actually like the Hogan staff. We still feel there is loads of prospect in the Southwest, but where we experience like we can set up a footprint with a excellent model and superior men and women and have home to improve – those are chances we will not want to move up. Hogan is a great illustration of that.”

‘Lots of opportunity’

Started in 1989, LGP holds far more than $50 billion assets and has invested in additional than 100 corporations, together with auto overall body chain Caliber Collision, which has advanced into what Sunlight Car officials simply call “the largest company of collision repair services in the place.”

Garman claims LGP’s “experience with Caliber and other brands they’ve invested in, which commenced out like Sunshine,” will establish to be a must have. The knowledge to get from in which we are currently to where we want to be 5 yrs fom now is an important aspect of what they provide to the desk.”

Independent tire dealerships are an eye-catching concentrate on for traders, notes Garman.

“We’re in an field that is extremely fragmented – even with all the M&A activity heading on – with loads of chance, notably in the Southwest, Northwest and some of the other southern states.

“We generally like to say we’re a reasonably recession-proof business and that tends to make us desirable. I consider we’re heading to see (M&A) activity for the foreseeable long term.”

When wanting to get tire dealerships, Sunshine Car considers distinctive conditions, in accordance to Garman. 

An eye-catching footprint, “a good reputation” among the consumers and “then definitely, earnings” are vital pieces of the puzzle.

“If we’re going into a new market, people demands may possibly be a very little different. If we’re in a market place presently and are on the lookout to expand our footprint, is (the probable acquisition) complementary to what we’re carrying out there?

“Ultimately, we’re looking to buy great firms,” he claims. “We’ve been fortunate to have acquired fantastic companies that are whole of great individuals and we do a excellent job of retaining these men and women.”