Les Schwab Tires announced Tuesday an agreement to sell the company to an out-of-state investment firm called Meritage Group.
The firm has offices in California, Connecticut and New York, according to its website, and began investing in 1997 in public and private equity, credit and real estate.
“The decision to sell has always been about securing the long-term success of the company,” Les Schwab Chief Executive Officer Jack Cuniff said in a statement. “Meritage Group has a history of preserving culture and values while growing its companies with investment over time. This is a great fit and aligns well with Les' vision and all we have built together.”
Les Schwab’s board of directors and shareholders announced last December the decision to seek new ownership for the Oregon-based company. They cited “the complexities of operating a family-owned business with five generations of family members, as well as the company’s strong position” as factors in that decision, according to a news release.
The company began in Prineville in 1952. It became one of Oregon’s largest companies, with nearly 500 stores in 10 states and annual sales of approximately $1.8 billion.
“As our family grows and ages, it has been very important to us to remain committed and aligned behind our grandfather’s vision,” the family shareholders said in a joint statement. “While it was hard to make the decision to sell the company, we are very confident Meritage Group will continue that commitment and alignment and will build on all we have accomplished over the past 68 years.”
Meritage Group also owns the Portland-based beverage distributor Columbia Distributing, which it acquired in 2012, according to a news release.
“We see Les Schwab Tires as an ideal investment,” Aubrey Barth, managing director of Meritage Group, said in a statement. “The company’s exceptional employees and programs, strong financials, and respected, customer-focused brand set it up for success for years to come.”
The sale is expected to be complete by the end of the year. Neither group has disclosed the purchase price.
Les Schwab said its operations and management team will remain the same.