Precision Tune Auto Care Diversifies
9 December 1997
Precision Tune Auto Care Diversifies; Merges With Car Wash, Lube Chains
LEESBURG, Va. Dec. 9 -- Striving to diversify within the
auto-aftermarket, Precision Auto Care, Inc. , the nation's
leading franchisor of auto care centers, announced that Precision Tune Auto
Care (PTAC) has merged with two car-wash chains, a quick-lube franchisor and
other affiliated companies creating a vertically integrated organization
franchising auto care, car wash and quick lube centers. All operations are
being consolidated under the "Precision" brand and will be franchised
internationally.
Jay Ripley, president and CEO of Precision Auto Care, reported that
Miracle Industries, Inc., Lube Ventures, Inc., both of Mansfield, Ohio, and
Rocky Mountain Car Wash of Aurora, Colo., "have been merged with the PTAC
family, creating the first and only nationally recognized chain to combine
automotive services with car washes and quick lube and oil changes in the
$100-billion-a-year domestic(1) auto care arena."
Miracle Industries owns and operates 25 self-service car wash centers and
a car-wash supply and equipment manufacturing facility. Rocky Mountain Car
Wash is a nine-unit car wash chain. Operations of the two chains have been
integrated to form Precision Auto Wash, a new franchise that constitutes one
of the nation's largest automatic and self-serve car wash entities.
Lube Ventures, manufacturer of modular quick-lube buildings, also
franchises Lube Depot, a chain of 21 quick oil-change and lube centers. The
quick-service franchise has been renamed Precision Lube Express.
Ripley sees "tremendous potential in terms of the synergies we can achieve
with these concepts in conjunction with our high-tech auto care centers. Our
new capabilities provide the opportunity to see more customers, develop
on-going customer relationships and grow market share. This merger -- which
includes HydroSpray Car Wash Equipment Ltd., manufacturer and distributor of
car wash equipment, Miracle Chemicals, which blends and distributes chemical
solutions for car washes and Worldwide Dryer, Inc., manufacturer and
distributor of vehicle drying systems for automatic car washes -- will create
a multiple-solutions provider of the high frequency maintenance services
needed and demanded by the motoring public."
Precision Auto Wash features touchless automatic and self-service car-wash
bays, HydroSpray equipment and proprietary operating systems. Ripley said the
new brand enters the market with significant competitive advantages, not the
least of which is the fact that the state-of-the-art operation can be
monitored from a home computer. "The computerized wash system, which
eliminates the need for on-site supervision, allows the operator to change
time cycles and equipment functions, and to monitor the status of operations
quickly, easily and cost-effectively from a remote location, even from a
laptop."
Furthermore, each center offers motorists 24-hour convenience, ease and
better quality washes with reduced risk of vehicle damage, he noted.
Precision Lube Express was described by Ripley as "a modular,
free-standing service center that provides oil and filter replacement and
chassis lubrication services." A center can be operational in a matter of
weeks, he said, requiring no excavation or extensive site preparation.
Available with one or two bays, the low overhead operation can be relocated or
expanded quickly and in a relatively small space.
The combined company, on a pro-forma basis, has 625 units, and achieved
pro-forma combined sales of $217 million for the fiscal year ended June 30,
1997. The core brand, Precision Tune Auto Care, has more than 550 franchised
auto care centers operating in the United States, Mexico, Canada, Taiwan,
Puerto Rico and the Bahamas. New PTAC centers are scheduled to open soon in
Brazil, Oman, Jamaica and Singapore. Established in 1975, PTAC provides the
driving public with convenient and professional services including expert
diagnosis, repair, complete fluid maintenance services, cooling system
service, air conditioning service, brake service, emissions system service,
ignition, starting/charging service and maintenance of all systems related to
engine performance. Each center is staffed with trained technicians using
state-of-the-art diagnostic equipment.
The statements in this press release concerning management's expectations
regarding the merger and future operations of Precision Auto Care constitute
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are subject to risks and uncertainties that could cause
Precision Auto Care's results to differ materially. Such risks and
uncertainties include the fact that the merged companies have not previously
conducted any operations as a combined company, the seasonal nature of
portions of the business, the highly competitive markets in which the company
operates, and difficulties in integrating the merged businesses.
(1) Automotive Parts and Accessories Association, and the International
Car Wash Association.
SOURCE Precision Auto Care, Inc.
