PALM BEACH GARDENS, Fla. — TBC Corp. has agreed to sell its NTB Tire & Service Centers and Tire Kingdom Service Centers retail business to Mavis Tire Express Services Corp. for an as-yet undisclosed sum.
The deal covers TBC's 203 Tire Kingdom stores in Florida and 391 NTB stores in the mid-Atlantic, Midwest and South, including Texas, expanding Mavis' retail holdings to nearly 2,000 stores across 28-plus states.
The deal includes provisions for TBC to provide wholesale and tire distribution for Mavis retail locations.
"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," TBC President and CEO Sam Kato said.
"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."
This deal is the second such transaction between TBC and Mavis. In 2020, Mavis acquired 112 NTB stores in four major metropolitan areas from TBC.
All NTB and Tire Kingdom retail store and retail field management associates will have the opportunity to continue their careers with Mavis, the parties said.
Tire Business estimates the TBC retail business generates roughly $2 billion in annual revenue.
"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," Stephen Sorbaro, co-CEO of Mavis Tire Express Services Corp. said.
"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.
In fiscal 2022, TBC reported pre-tax operating income (EBITDA) of $293.4 million on sales revenue of $5.56 billion; Michelin did not elaborate on TBC's performance, other than to say: "Restructuring the TBC dealership network acquired in 2018 has provided the group with particularly optimized, efficient market access and geographic coverage."