Cape Girardeau-based Plaza Tire to merge with Sun Auto by year-end

Plaza Tire Service, founded in Cape Girardeau in 1963, has announced it will partner with Tucson, Arizona-based Sun Auto Tire & Service and become a wholly-owned Sun subsidiary by Dec. 31.

The addition of Plaza Tire's 70 locations in Missouri, Illinois, Kentucky and Arkansas will bring Sun Auto to more than 350 outlets, according to a Tuesday news release.

"We didn't go looking for a buyer for our company." said Plaza Tire Service president Mark Rhodes, who said the addition of PTS will give Sun Auto its "largest presence" currently in the Midwest

"When Sun Auto reached out and we saw their plans, the way they do business, the other acquisitions they made, it became clear this could be a good option for us. We're excited to get started on this next chapter in the history of Plaza Tire Service. This transition will be seamless for both our customers and employees. We will continue to provide the same types of products and services, and our focus on outstanding service (with) the largest selection available and the lowest out-the-door price remains the same."

Financial terms of the deal were not disclosed but the release stated Plaza Tire's owners, Mark and Scott Rhodes, "have invested substantially in Sun Auto."

Plaza Tire's headquarters, warehouse and distribution center will remain in Cape, company officials said, adding there will be no employee downsizing as a result of the transaction with all store, office and warehouse positions continuing.

PTS said it is currently recruiting new employees.

"We've got great employees here, and we enjoy what we do," Mark Rhodes told the Southeast Missourian, adding the quality of Plaza Tire's workforce "is what made this happen."

Plaza Tire's name, the release added, will remain the same and all current stores will continue to be branded as Plaza Tire Service as will any new stores.

Current management will remain in place with Mark and Scott Rhodes, the latter PTS' vice-president, and Mark's oldest son, Sam, to continue in their respective day-to-day operational roles.

"We have been growing this company and building on our father's legacy for years," said Scott Rhodes.

"Our agreement with Sun Auto lets us continue to grow the Plaza Tire Service brand. From the perspective of our employees and customers, it's business as usual."

Sun's rebranding and expansion

Until June, Sun was known as GB Auto Service with outlets in Arizona, California, Nevada, Texas and Oklahoma.

Sun's most recent acquisition was four locations in San Antonio, announced June 14.

Previous additions to Sun Auto Tire & Service include Fresno, California's Goodguys Tire & Auto Repair; three ServiceONE automotive stores in Houston; Texas-based Reliable Automotive; Tate Boys Tire & Service of Oklahoma and Phoenix-headquartered Sun Devil Auto and Sun Auto Service.

"We welcome the opportunity to partner with Mark and Scott Rhodes and the entire Plaza Tire Service team as they bring their best-in-class customer service experience into the Sun Auto Tire & Service family," said Tony Puckett, chief executive officer of Sun Auto Tire & Service. "Plaza Tire Service has developed an exceptional reputation throughout their markets. This highly strategic acquisition positions our company to further strengthen the overall store portfolio and positions us for accelerated geographic growth throughout the midwestern region of the U.S."

Expansion philosophy

"Sun Auto Tire & Service continues to expand its presence throughout the United States and is entertaining acquisition discussions with operators who wish to preserve their companies' legacies while leveraging the benefits of shared resources and technology to grow their businesses," according to a statement on Sun's website.

"Clearly, economies of scale come into play. We have a lot of buying power as Plaza Tire Service and [our] wholesale division. When you add [Sun's] 280 locations to the mix, that makes a difference and further cements our ability to bring the best deal on tires to our customers," Mark Rhodes said Wednesday. "We anticipate that customers may see a broader selection of brand offerings in our locations."