PALM BEACH GARDENS, Fla.TBC Corp. has confirmed it plans to acquire the tire inventory from Del-Nat Tire Corp. along with certain other assets, including the ownership of all Del-Nat brands and trademarks.
The parties did not disclose financial terms of the deal. Memphis, Tenn.-based Del-Nat originally had notified its stockholders in late December of a pending deal with TBC.
TBC said acquiring Del-Nat's inventory, brands and trademarks will add both domestic and international customers to TBC's portfolio, thus enhancing its distinction as one of the largest marketers of automotive replacement tires through a multi-channel distribution strategy across the country.
The acquisition of Del-Nat's inventory, brands, and trademarks is good for TBC and it's good for Del-Nat members, said TBC Executive Vice President Marty Krcelic.
We expect this transition to be smooth and seamless as we will continue to offer both warehouse and factory-direct programs to Del-Nat members while modernizing and growing the Delta and National brands, Mr. Krcelic added.
TBC has been around for nearly 60 years. Our quality and professionalism are well-regarded throughout the tire industry and adding the Del-Nat customer base is a natural progression for our company.
In its earlier letter to shareholders, Del-Nat cited the U.S. government's determination of a countervailing duty rate of 81.29 percent on Shandong Yongsheng Rubber Group, which produces most of Del-Nat's Sentinel-brand tires, for its financial difficulties.
The terms of the countervailing duties include a 90-day retroactive liability, which Del-Nat said in its case would total about $4 million.
It's unclear at this point what antidumping duty rate would apply to Shandong Yongsheng. It's not listed separately as one of the companies levied a 27.72-percent rate, but it is listed as a producer associated with Crown International Corp. and Qingdao Crown Chemical Co. Ltd. of Qingdao, China, according to the Commerce Department's International Trade Administration's preliminary determination notice, issued Jan. 21.
If not, the China-wide rate of 87.99 percent would apply.
Last summer Del-Nat started through a restructuring process, parting ways with President Jim Mayfield and Vice President Lyle Symonds and hiring Brian Grant, a restructuring expert with Conway MacKenzie Inc., as interim CEO.
TBC is headquartered in Palm Beach Gardens and operates warehouses in Summer-ville, S.C., and Memphis under the TBC Brands name.
TBC's proprietary brands include: Cordovan, Duck Commander, DynaCargo, ElDorado, Harvest King, Jetzon, Multi-Mile, Power King, Sigma, Telstar, Towstar, Towmax, Trailer King and Vanderbilt. The company also is the exclusive importer/distributor of the Sailun and Sumitomo brands.