BY MIKE BOYER
The Cincinnati Enquirer
Michel Tire Co., which has grown from one store on Glenway Avenue into a chain with 61 locations in five states since 1970, has merged with a growing Florida-based tire and auto service chain. Terms weren't disclosed.
Tony Michel, president, said the merger with Clearwater, Fla.-based Morgan Tire & Auto Inc. won't mean a change in his company's name or operations.
Michel, one of Cincinnati's largest privately held companies, had sales last year of $68 million and employs 700.
Morgan Tire, which operates more than 180 tire stores in 11 states, is owned by Larry Morgan, who started with a small chain of tire stores in Manassas, Va., in the early 1970s.
"We've been friends for a long time, and it seemed like the right time to join together," said Mr. Michel.
Mr. Morgan said the deal with Michel is the second of four he expects to complete this year to expand his company to 320 outlets and increase sales to about $500 million by the end of next year.
The deals will make Morgan Tire one of the top three independent tire dealers in the country behind Phoenix-based Discount Tires and Penske Auto, which has outlets in Kmart stores.
By combining the power of national purchasing with locally based management, Mr. Morgan said he hopes to maintain the best of both worlds. The merger agreement with Michel grew out of the Tire Alliance Groupe, an alliance of 16 independent tire retailers that Mr. Morgan and Mr. Michel helped form four years ago.
Mr. Morgan said most of the accounting and information systems functions will be transferred to corporate headquarters, but Mr. Michel will continue as president of Michel Tire.
Earlier this year, Morgan acquired Hibdon Tire Centers, Oklahoma's dominant independent tire dealer. In the Southeast, Morgan does business as Olson Tire Total Car Care, a chain Mr. Morgan acquired in 1991.
Last year Morgan acquired 28 Automotive Industries Inc. locations in Georgia and South Carolina and some Parnelli Jones Inc. stores in Reno, Nev.
Mr. Morgan said Olson Tire typically carries more tire brands than Michel and does more general automotive service. Over time, he said, those areas may be expanded at Michel stores.
Besides its Ohio stores, Michel has outlets in Kentucky, Indiana, Tennessee and the Florida panhandle.
