Mavis Discount Tire signed a definitive agreement to merge with Express Oil Change & Tire Engineers, creating one of the largest independent chains of auto service providers in the United States. The merged chain will have more than 830 locations offering oil changes and other services.
Financial terms of the agreement were not disclosed, and the deal is set to close in the first half of 2018.
Additionally, Golden Gate Capital, a San Francisco-based private equity investment firm that already owns a stake in Express Oil, will purchase ONCAPs stake in Mavis. ONCAP is the mid-market private equity platform of Onex, which is based in Toronto. Golden Gate Capital declined to comment on its involvement in the new company.
Both companies will operate business as usual, with no changes to branding, name or location, an Express Oil representative noted in an interview. The companies declined to provide additional comments.
When the deal closes, the merged company - which has yet to be named - will have more than 830 locations across 24 states throughout the East Coast, South and Midwest. That would have been enough to place eighth on National Oil and Lube News 2017 ranking of Lube+ chains - those that provide oil changes but that earn most of their revenue from other auto services and products. The 2017 rankings - published in March of last year - listed Mavis as the 12th-largest Lube+ chain and Express Oil as the 10th-largest pure oil change chain.
Current Mavis Co-CEOs David and Stephen Sorbaro will lead the new company, and Express Oil CEO Ricky Brooks will be named executive chairman.
Express [Oil] is the ideal partner as we continue to expand our footprint nationally, said David Sorbaro.
Millwood, New York-based Mavis had 430 service centers across Florida, Georgia, Massachusetts, Connecticut, Pennsylvania, New Jersey and New York. It was founded in 1972 by Marion and Victor Sorbaro. Express Oil has roughly 400 company-owned and franchise locations in 19 states. The Birmingham, Alabama-based company was founded in 1979.