Belron US, Columbus, Ohio, has signed a letter of intent to purchase substantially all of the assets of Harrisburg, Pa.-based Cindy Rowe Auto Glass, says Jenny Cain, public relations manager, Belron US.
"The companies will go through a due diligence process for approximately 90 days," Cain says. "Throughout the due diligence process Belron US and Cindy Rowe Auto Glass will continue to operate as separate and independent entities and as competitors. The deal is expected to close by the end of 2008."
Cindy Rowe representatives did not answer questions about the purchase.
In other Belron news, the company will consolidate some of its Diamond Triumph stores. "Over the past several weeks, Belron US and Diamond Triumph senior and field management have conducted a detailed evaluation process to determine the optimum number of locations needed to best serve our customers," Cain says. "All scenarios were considered: leaving all stores open; consolidating Diamond Triumph stores into Belron US locations and consolidating Belron US stores into Diamond Triumph locations."
Obviously, it is inefficient to have two stores covering the same geography, Cain says. "Plans are for 119 existing Diamond Triumph locations to remain open. 97 Diamond Triumph stores will be consolidated into Belron US locations and 53 Belron US Mobile Pros will be relocated to Diamond Triumph locations," she says.
Assuming Belron's customer retention objectives are met, no job losses are expected to result from this store consolidation, Cain says. "Store managers, technicians and customer service representatives affected by store consolidations will be reassigned to other locations," she says.
In addition, there is a plan to spend $2 million to $3 million to upgrade the 119 Diamond locations, Cain adds.