Meritage Group, the investment firm that acquired Les Schwab Tire Centers in 2020, is reportedly considering selling the iconic tire company. According to a Reuters report, Meritage has brought in Goldman Sachs to oversee the potential sale, which could value the Bend-based business at over seven billion dollars.
It's Unknown If The Iconic Oregon Tire Company Will Stay In Oregon After The Sale
Les Schwab, known for its customer-focused service and iconic founder, has been a key player in the Western U.S. tire market since its founding in Prineville, Oregon, in 1952. Today, it operates more than 500 locations across 13 states and employs about 7,000 people.
Under Meritage's ownership, Les Schwab has expanded it's tire stores by about 10% while maintaining its Oregon roots, with headquarters in Bend and a primary distribution center in Prineville. When the Schwab family first sold the company, they emphasized the importance of preserving Les Schwab’s values and keeping the company's operations in Bend and Prineville. It’s uncertain whether Meritage will require similar conditions for a new buyer as they evaluate their next steps for the tire retailer.
Les Schwab is one of Oregon’s most recognized businesses, valued for its stable revenue and strong market presence. With an estimated EBITDA of $500 million, the company could be priced at around 15 times that figure, making it an appealing target for investors looking for steady returns in the resilient tire and auto service industry.
While the sale of the company is not guaranteed, the involvement of Goldman Sachs indicates a serious exploration of options, likely attracting interest from private equity firms and larger tire chains.
