Precision Auto Care Introduces Two New Franchise Concepts
9 December 1997
Precision Auto Care Introduces Two New Franchise Concepts
LEESBURG, Va., Dec. 9 -- Who says oil and water don't mix?
The combination is a perfect blend for Precision Auto Care, Inc.
, as the nation's leading franchisor of auto care centers
introduces two new and dynamic franchises: Precision Auto Wash and Precision
Lube Express.
In a bid to become "a dominant player in the $100-billion-a-year(1)
domestic auto care industry, we are using the 22 years of Precision Tune Auto
Care (PTAC) brand equity and awareness to market the new car wash and quick
oil change and lube franchises," says Jay Ripley, president and CEO of
Precision Auto Care. "This will be achieved through co-branding and building
on the recognition of our core PTAC franchise. Our strategy is to take
advantage of the strength of our PTAC brand to launch two complimentary
turn-key business concepts suited for the owner/operator or the investor."
Designed to be operated individually, in concert with one another or in
combination with PTAC centers, the new concepts are available nationwide,
according to Kevin Rooney, vice president of franchise sales. Rooney reports
that Precision Auto Wash, with 34 existing locations, already is one of the
nation's largest operators of automatic and self-serve car washes.
Rooney describes Precision Auto Wash as a "state-of-the-art operation that
can be monitored from a home computer, making it ideal for someone who wants
to pursue a career and operate a sideline business. The convenient, 24-hour
car wash features touchless automatic and self-service bays, HydroSpray
equipment and proprietary computerized operating systems that ensure easier
and better quality washes with reduced risk of vehicle damage."
Precision Auto Wash centers, which also offer powerful vacuums, and
vending machines for auxiliary items, are located on half-acre sites in
high-traffic, commercial areas. However, the adaptable structures can readily
be attached to existing quick-lube businesses.
Similarly, the modular Precision Lube Express center "can be installed
into an existing self-service car-wash bay or quickly attached adjacent to a
car wash. This provides a unique opportunity for owners of car washes to
diversify their operations with the inclusion of a lube bay," Rooney points
out. "The modular construction offers unique location placement advantages
and requires very little space. Available with one or two bays, a center can
be operational in a matter of weeks, requiring no excavation or extensive site
preparation, and can be quickly relocated or expanded."
The low-overhead Lube Express, which also fits nicely in a shopping mall
parking lot, provides oil and filter replacement and chassis lubrication
services, check and fill of vital fluids, safety inspections of critical
under-the-hood and under car components, retail air filters, PCV valves,
breather filters, wiper blades and engine additives.
While Precision Lube Express "works in virtually any type market -- from
big city to small town," Rooney is intent on introducing the concept to
"smaller markets that do not now have quick-lube facilities. These arenas are
ideal for our low-cost/easy entry franchises which allow local entrepreneurs
to operate in markets with populations of as little as 10,000 to 12,000."
Precision Auto Care is the first nationally recognized chain to combine
automotive services with a car wash and quick lube concept. It has done so on
the heels of a series of mergers bringing PTAC together with nine companies,
creating a vertically integrated organization.
Ripley calls the mergers "a fit that will make us a multiple-solutions
provider of services needed and demanded by the motoring public. We see
tremendous potential in terms of the synergy 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."
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 by 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.
