Atlantic Automotive Corp., an Owings Mills-based holding company, moved to expand its involvement in the automotive tTC service business yesterday with its agreement to acquire the Savage-based Mr. Tire chain.
Mr. Tire operates 22 retail tire stores in Maryland and Northern Virginia; 20 of the stores are in Maryland and 16 of those are in the Baltimore area.
Terms of the transaction between the privately held companies were not disclosed. The acquisition is scheduled to close Oct. 1.
Atlantic is the parent of Heritage Automotive Group, which operates 19 new-car franchises in Maryland.
Heritage has new-car dealerships in Anne Arundel, Baltimore, Howard and Harford counties. Its offerings include: Saturn, Chevrolet, Dodge, Mazda, Cadillac, Oldsmobile, Volkswagen, Jeep, Subaru and Kia.
Steven B. Fader, president and chief executive of Atlantic, said the 22 Mr. Tire stores provide "a service delivery platform that could provide additional automotive services to our customers."
In addition to selling tires, Mr. Tire stores provide oil changes along with brake, shock absorber, muffler and battery service.
Fredric A. Tomarchio and Joseph Tomarchio Jr., owners of Mr. Tire, will remain the company's president and executive vice president, respectively.
They will continue to manage the stores for Atlantic and both will become members of Atlantic's executive committee.
Fredric Tomarchio said that becoming part of Atlantic "will allow us to take Mr. Tire to the next level in terms of growth and customer service. It puts us on an equal footing with the top companies in the business, including mass merchandisers and national automotive chains."
Mr. Tire was founded in 1970 by Joseph Tomarchio Sr., father of the current owners.
In the last eight months it has opened stores in Towson, Randallstown and Westminster.
In addition to its new-car sales and auto leasing operations, Atlantic Automotive is involved in vehicle rental and the rental of equipment ranging from computer systems to heavy construction equipment, including bulldozers.
Heritage is in the process of acquiring Herb Gordon Auto in Silver Spring. That transaction would add four locations, selling Mercedes-Benz, Kia, Dodge, Oldsmobile, Nissan and Volvo automobiles.
Fader said that once the acquisitions of Herb Gordon and Mr. Tire are complete, Atlantic will have about 1,200 employees and about $550 million in revenue.
Pub Date: 6/23/98