TBC Corporation announced that it has entered into an agreement to divest its company-owned retail portfolio to Mavis Tire Express Services Corp. (Mavis). In connection with the transaction, through which Mavis will acquire 392 NTB Tire and Service Centers (NTB) and 203 Tire Kingdom Service Centers (Tire Kingdom), Mavis and TBC have entered into a distribution agreement, through which TBC will provide wholesale and tire distribution for Mavis retail locations. Financial terms of the transaction are not being disclosed.
“As we execute our growth plans and strategies, we continuously analyze the assets in our portfolio and periodically fine-tune them to drive superior performance in our core focus areas,” said Sam Kato, president and CEO of TBC Corporation. “Divesting our company-owned retail business allows us to focus and strengthen our wholesale business, pursue growing our distribution and ‘supply chain as a service’ solutions while bolstering our market-leading Midas and Big O Tires franchise businesses. We have never been in a stronger position to offer best-in-class solutions that address a full range of customer priorities while driving innovation and long-term sustainable growth.”
The 595 NTB and Tire Kingdom stores Mavis is acquiring are in Florida and Texas, as well as other states in the mid-Atlantic, Midwest and South, TBC said. Upon close of the transaction, Mavis’s retail footprint across all of its brands will span approximately 2,000 locations, including the 112 NTB stores acquired by Mavis from TBC in 2020. All NTB and Tire Kingdom retail store and retail field management associates will have the opportunity to continue their careers with Mavis.
“Today’s announcement represents a significant milestone in the continued acceleration of Mavis’s growth strategy, enabling us to deepen our presence in existing markets and expand our Mavis brand into new markets throughout the Midwest, mid-Atlantic and in Texas,” said Stephen Sorbaro, Co-CEO of Mavis Tire Express Services Corp. “We have a strong working relationship with TBC and a history of successfully integrating NTB locations into our platform, and we look forward to partnering with them again to welcome the talented NTB and Tire Kingdom teams to the Mavis family.”
Kato added: “It was important to us to identify a buyer with an exceptional people-centric culture that aligns with our company values. From our long-term partnership with Mavis, we are confident they are well-positioned to accelerate growth in the NTB and Tire Kingdom businesses as they continue to invest in expanding Mavis’s national footprint.”
The transaction is expected to close in the coming weeks.
