Following news that TBC Corp. will purchase Midas Inc. for an estimated $310 million, Midas CEO Alan Feldman described the deal as "the best opportunity for Midas to go forward."
“It’s a strategic, compelling marriage of two leading brands in the automotive repair aftermarket,” Feldman told the Chicago Tribune. “Tires are an important part of our business and growing, and have tremendous opportunity…It broadens our product lines, should get us better pricing (and) helps us become more competitive in the tire category.” He also said the merger helps TBC by expanding its reach for tire distribution.
Sumitomo Corp.-owned TBC – which already holds brands that include franchise-based Big O Tires, and owned retailers NTB, Tire Kingdom and Merchant’s – is acquiring an “iconic brand,” TBC CEO Lawrence Day said in a statement. “By combining the strengths of Midas’ platform with our industry expertise and financial resources, we will build on their current momentum and take the company to the next level.”
Shares of Midas rose 27% Tuesday on the news, closing near a two-year high at $11.44 per share. That puts the price near TBC’s buyout offer price of $11.50 per share. Under terms of the merger agreement, TBC will offer to buy Midas shares no later than March 28. The deal is expected to close by the end of the second quarter.
