MFA Oil buys out Big O stake in joint venture

MFA Oil is now the sole owner of BORE/MPC, previously a joint venture between MFA and Big O Tires. The oil cooperative bought out Big O’s stake in the company, which operates 15 Big O Tires stores in Missouri and Arkansas.

The two companies partnered in 1988, giving MFA franchising rights for Big O stores in mid-Missouri and Arkansas. But prior to the buyout, operations — especially expansion — required too much red tape for MFA’s ambition.

“There were too many levels of approval to go through when it was a joint venture,” said Rusty Coats, director of retail tire sales for MFA Oil. “We’re closing on a property in Branson this Friday, and we’ll have it open by August 10, including a full renovation. With the joint venture, that would have taken six months.”

When asked if the desire to expand motivated the buyout, Coats said: “Yes. Oh Yes.”

There are two new franchises close to opening, including one in Fayetteville, Arkansas, two miles for the University of Arkansas campus.

Though he declined to give specific financial details, Coats said that MFA had a pre-assigned buyout in place when the company partnered with Big O in 1988. He said, “It was a good time to do this because the stores were worth more than MFA had to pay for them.”

MFA Oil plans on adding about two Big O franchises per year. Although expansion is now largely consolidated, MFA still has to follow Big O’s franchising regulations.

“As Big O Tires continues to look for opportunities to expand, this purchase will make that process, and others, more efficient,” said Mark Fenner, MFA Oil president and CEO, in a press release.  “And we’re very fortunate to have Rusty leading the Big O Tires team with his 40-plus years of experience in the tire and automotive repair business.”

MFA Oil moved its main office from St. Louis to Columbia in 1934.

 

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