Investment firm puts Les Schwab Tire up for sale
Group that bought company four years ago from family is asking for $7B
Les Schwab Tire Centers is up for sale again, and the investment firm who owns the company based in Bend, Ore., wants $7 billion for it, according to a new report from Reuters.
A California investment firm called Meritage Group bought Schwab Tire from Les Schwab’s descendants four years ago. Terms weren’t disclosed.
Meritage kept the corporate offices in Bend while expanding the number of Schwab Tire shops by about 10%, to 541. The company employs about 7,000 in 13 western states.
Citing anonymous sources familiar with the talks, Reuters said Meritage has hired Goldman Sachs to market Schwab Tire to other investment firms and bigger tire chains.
Schwab Tire is among Oregon’s most valuable and best-known businesses, long characterized by founder Les Schwab’s folksy TV advertisements and its attentive customer service. Schwab started the business in Prineville in 1952, and the company’s main distribution center remains in that small central Oregon town.
When the Schwab family sold their business four years ago, they said Meritage was committed to preserving the values and culture established by Les Schwab. The family had said any sale would be conditioned on keeping the company together and retaining the Bend headquarters and Prineville facility.
Schwab Tire didn’t immediately respond to an inquiry about whether it will put the same conditions on a new buyer.
