Sailun President Dolan: Mavis-TBC deal a win-win

BRAMPTON, Ontario — Sailun Tire Americas President Ron Dolan described Mavis Tire Express Services' acquisition of 595 retail locations from the TBC Corp. in one word, repeated twice: Win-Win.

Dolan said the industry-rattling transaction, which closed in early June, is good for both business entities.

In the deal, equity-group-backed Mavis acquired 595 TBC retail stores operating under the NTB Tire & Service Centers and Tire Kingdom Centers brands. Financial terms of the transaction, disclosed on May 22, were not released.

The TBC retail holdings are estimated to generate up to $2 billion in revenue annually.

"We believe the two companies are going to be able to do some things together and be interesting synergies going forward," Dolan said. "As far as Sailun is concerned, we don't think there is any negative impact of that sale to us."

Dolan said the deal enables TBC and Mavis to excel at what each does best.

"We believe that TBC has a strong strategy, and by them moving away from company owned retail, (it) lets them focus what they're amazing at, which is distribution," Dolan said in an exclusive interview with Tire Business.

"I'm very positive that with this new focus on distribution, that TBC's business will grow."

Sailun distributes its value-tier portfolio of tires, including its recently released ERange EV (electric vehicle-specific) lineup, exclusively in the U.S. through TBC Corp.

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.

As part of the agreement, TBC will provide wholesale tire distribution for Mavis' combined network, operating under a variety of brands.

Dolan called Mavis "a fantastic partner of our group as well," and lauded what the future holds on the retail side.

"Obviously that expansion of their retail is positive because that is what they are really good at," Dolan said.

"We see both these companies doubling down on their skill sets, what they're really good at, and we believe both companies will have growth from this move in their respective areas of strength."