PALM BEACH GARDENS, Fla. (Sept. 19, 2005) — Sumitomo Corp. of America (SCOA) has signed a definitive agreement to buy TBC Corp. for about $1.1 billion.
The transaction, which includes $35 per share in cash plus debt, is subject to TBC shareholder and regulatory approval. TBC said the deal is expected to close by year-end.
TBC will become a subsidiary of SCOA and its parent, Sumitomo Corp. of Japan. TBC will continue to be led by its current management team, headed by President and CEO Larry Day.
“This is the single largest investment that SCOA has made and complements our portfolio of operating companies,” said Susumu Kato, SCOA president and CEO in a prepared statement.
Mr. Day said TBC shareholders will receive a premium over historic trading levels.
“In addition, the continuity of management will provide excellent opportunities for employees, franchisees and supply partners who have enjoyed long-term relationships with the company,” he said.
Palm Beach Gardens-based TBC operates a wholesale and private brand division as well as retail subsidiaries operating under Tire Kingdom, Merchant's and NTB as well as franchise Big O Tires Inc.
SCOA is the largest wholly owned subsidiary of Sumitomo Corp., one of the world´s largest traders of goods and services. With annual revenues of about $1.7 billion, SCOA has interests in industries as diverse as transportation systems, raw materials like plastics, steel, chemicals and petroleum, real estate, computer technology and digital content, foodstuffs, fertilizer and aerospace.