TBC Begins Tender Offer for Midas Shares - Tire Review Magazine

TBC Begins Tender Offer for Midas Shares

Even as lawyers for at least four firms continue to troll for angry Midas shareholders looking to challenge the company’s self-sale, TBC Corp. has started its tender offer for Midas stock to complete its purchase of the auto service and tire chain.

TBC’s tender offer is for all of the outstanding shares of common stock of Midas at a price of $11.50 per share, net to the seller in cash without interest. The tender offer is being conducted by TBC through its wholly owned subsidiary Gearshift Merger Corp.
 
On March 13, TBC announced that it was buying out the international chain of company-owned and franchised retail service and tire centers. The estimated $310 million deal will technically “merge” Midas with Gearshift Merger Corp. The purchase price includes the assumption of $137 million in debt and pension liabilities.

TBC said the tender offer will last until April 24, unless the offer period is extended or terminated early, TBC said.

Sumitomo Corp.-owned TBC already operates 752 NTB, Tire Kingdom and Merchant’s Tire retail tire and service stores in the U.S., and has 456 franchised Big O Tire locations. In addition, TBC is the second largest U.S. wholesaler and independent importer through its TBC Brands, TBC International, National Tire Warehouse, Carroll Tire and Treadways operations.

With the Midas business in its portfolio, TBC would add more than 2,250 franchised, licensed and company-owned Midas shops in 14 countries, including nearly 1,500 in the U.S. and Canada. In addition, Midas also owns the SpeeDee Oil Change business, with 161 centers in the U.S. and Mexico.

Meanwhile, at least one Midas shareholder has filed suit against the Midas board of directors in an effort to stop the sale. According to the complaint, the unnamed plaintiff “alleges that the defendants breached their fiduciary duties” in attempting to sell Midas “at an unfair price via an unfair process.”

Further, the shareholder – represented by the so-called “Shareholders Foundation” based in San Diego – claimed that J.P. Morgan Securities, hired by Midas to advise it on its financial options, did not provide "disinterested" advice as it was also employed by TBC and stood to gain in a merger or purchase agreement between the two.

At least three other law firms are actively advertising to attract Midas shareholders unhappy with the terms of the purchase deal in hopes of launching multi-million lawsuits.

You May Also Like

Hamaton to relocate its European distribution hub in Germany

The new location, still located on the Siemensring business park, will provide increased storage space and more.

Hamaton-New-Unit-Plan

Hamaton said it will move its European distribution hub in Germany to a new larger premises in Willich, Germany. The new location, still located on the Siemensring business park, will provide increased storage space, improved facilities, flexible office space and bigger social areas for clients and staff, Hamaton said.

Hankook Tire’s Rob Williams on leveraging momentum for global expansion

The company’s North America president tells all regarding product philosophy, dealer growth strategy, and what responding to the tire market means in 2024.

Hankook-Dealer-Meeting-Rob-Williams-QA-1400
Bill Ziegler, Ziegler Tire president, dies

Bill spent 48 years with Ziegler Tire, most recently as president.

Bill-Ziegler-600
Pirelli marks 50 million tires manufactured at Mexico plant

Since 2012, Pirelli has invested over $900 million in the plant.

Pirelli-mexico-factory-milestone
Falken tests new R/T, M/T tires at The King of the Hammers

Seven different competitors fit their vehicles with Wildpeak tires.

Falken-KOH-team

Other Posts

Yokohama Rubber commits to SBTi validation for sustainable targets

This commitment letter pledges to set and submit targets that are aligned with the SBTi’s target-setting criteria within two years.

Yokohama-greenhouse-gasses-stock-
Michelin sees steady sales volume in 2023 YOY, increases NA market sales

The company said sales for the year amounted to approx. $30.6 billion, down a slight 0.9% from 2022.

Michelin-Magog
Double Coin to participate in this year’s TMC trade show

Double Coin will showcase its EPA Smartway-verified truck tires including the FR610 steer, FD405 drive and the FT115 trailer position tires.

Double-Coin_TMC-1400
SRNA promotes director of product planning for Falken PLT tires

With more than two decades of experience in the tire industry, TJ Johnson is now coming up on eight years with SRNA.

Tsuyoshi-Johnson-SRNA