Modern Tire Dealer 100 MTD: Will Sun Auto continue to target a mix of auto service chains and independent tire dealerships or will the company’s future mix be more tire dealership-heavy? Kneller: Our process is less about partnering with a company based on service or tire mix and more focused on the overall business fundamentals, including store format, market dynamics and the strength of the management team.
“There are over 100,000 repair shops in the U.S., so we view store growth opportunities as essentially limitless,” says Sun Tire & Auto Service CEO Frank Kneller. “Our focus is on finding high-quality businesses that are trusted within their communities.”
Under the Sun
GB AUTO SERVICE REBRANDS, CONTINUES M&A-FUELED GROWTH By
Mike Manges
G
B Auto Service Inc., which last month rebranded as Sun Auto Tire & Service Inc., has been busy since the 2020 edition of the MTD 100 was published. This past October, the company acquired Tate Boys Tire & Service, a seven-location chain based in Oklahoma. The following month, it acquired Reliable Automotive, which is based in Texas. In December, the company bought three ServiceONE Automotive stores in the Houston, Texas, area. And in March 2021, it acquired Goodguys Tires & Auto Repair, an eight-store dealership based in Fresno, Calif. CEO Frank Kneller discusses what’s next for Sun Auto & Tire Service, which has 200 total stores, during this interview. He also explains why he is “encouraged by the resiliency” of the retail tire market and why Sun Auto views its own growth potential as “essentially limitless.”
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MTD: How challenging has it been to integrate tire sales and service into Sun’s auto service chain acquisitions? Kneller: While all transitions are hard work, our team has developed a playbook to integrate acquired businesses, which includes considering the right service mix for each store and ensuring we can provide a complete repair solution for customers. In the case of Sun Devil, that business was built as a high-velocity service model and has unparalleled brand recognition in its markets, so we view tires as a more opportunistic addition. (Editor’s note: GB Auto Service acquired Sun Devil Auto Service in July 2020.) In other service acquisitions, we’ve been quicker to implement tires as a way to drive incremental traffic and in many cases, that is a natural transition as many of our customer managers have had experience running tire-forward stores in the past.
MTD: GB Auto Service, now known as Sun MTD: Does Sun Auto have a store Auto Tire & Service, has made a number count target? of acquisitions since last summer — all Kneller: There are over 100,000 repair west of the Mississippi. Will shops in the U.S., so we view the western part of the U.S. store growth opportunities as continue to be an area of focus? essentially limitless. Does the company have plans Our focus is on finding highquality businesses that are trusted to enter new areas? Kneller: Our goal is to conwithin their communities and tinue our growth strategy by fit our model and we’re compleengaging with owners of great menting mergers and acquisitions companies who are ready to with an active greenfield strategy sell, but are also looking for a where we see opportunities to respectful home for both their build new locations in growing customers and employees to Kneller says Sun markets. Auto Tire & Sertransition to. vice’s platform “is While it is true that our cur- not restricted” to MTD: What’s your assessment rent acquisitions have all been in the western part of of the retail tire market? the U.S. “You will the Sun Belt and western states, see us continue to Kneller: We’ve been encouraged our platform is not restricted to expand into new by the resiliency of the tire marthese geographies and you will territory throughout ket. We think that is a validation see us continue to expand into the U.S. over time.” of the non-discretionary and (Sun was previnew territory throughout the ously known as GB essential nature of the services U.S. over time. that we offer. ■ Auto Service Inc.) MTD July 2021
6/30/21 10:41 AM
