Exit Represents a Successful Turnaround for an Affiliate of Sun Capital
BOCA RATON, FL Sun Capital Partners, Inc., a leading private investment firm specializing in leveraged buyouts and investments in market–leading companies, today announced that an affiliate has sold Big 10 Tires (“Big 10” or the “Company”), the seventh–largest independent tire dealer in the U.S., to The Pep Boys – Manny, Moe & Jack (“Pep Boys”), an automotive aftermarket service and retail chain. Terms of the transaction were not disclosed.
Big 10 operates 85 stores throughout the Southeast which sell a variety of tires and provide a full range of automotive maintenance and supply services, including oil change, light engine parts and battery replacement and brake repair. The Company has a leadership position in its core markets in Alabama, Florida and Georgia.
Big 10 was originally acquired by a Sun Capital affiliate in November 2006. In June 2009, the Company initiated a restructuring process by filing for bankruptcy due to the consumer–led economic downturn. The assets of Big 10 were subsequently acquired out of the bankruptcy estate by an affiliate of Sun Capital.
Since the acquisition, Big 10 has optimized its cost structure and footprint to remain competitive during both the recession and an era of rising fuel prices. In addition, Big 10 has expanded its product offering, realigned the management structure to improve operating efficiencies, and launched a campaign that further strengthened the Big 10 brand in its core markets. As a result, Big 10’s performance has improved and the Company has grown through a targeted reopening of select stores that were closed during the bankruptcy and restructuring process.
“We are delighted by the progress Big 10 has made. The Company has maintained its position as one of the leading aftermarket tire and service retailers able to weather even the most challenging market conditions,” said Peter Y. Lee, a Vice President at Sun Capital Partners. “We are confident that Big 10 will continue to perform and grow under its experienced new owners.”
“This acquisition furthers our stated strategy to grow through Service & Tire Centers,” said Mike Odell, President and CEO of Pep Boys. “We are very excited to add this many new Service & Tire Centers in a single transaction and to improve our market density in Orlando, Atlanta and the Gulf area of Florida and Alabama.”
Morgan, Lewis & Bockius LLP acted as legal advisor to the sellers in connection with the transaction.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in–house operating professionals and experience. Sun Capital affiliates have invested in more than 260 companies worldwide with combined sales in excess of $40 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen. For more information, please visit www.SunCapPart.com.
About Big 10 Tires
Big 10 Tire is the seventh–largest independent tire dealer in the U.S. Big 10 Tire operates 85 locations from which it sells multiple types and brands of tires and provides a full range of automotive maintenance and supply services, including oil change and battery and brake repair. The Company was founded in 1954 and holds market leadership positions in key markets throughout Alabama, Florida and Georgia.
For more information contact:
Katrin C. Lieberwirth
Stanton Public Relations & Marketing