Grease Monkey buying SpeeDee business from TBC

PALM BEACH GARDENS, Fla. (Feb. 3, 2017) — TBC Corp. has sold its SpeeDee Oil Change & Auto Service franchise business to Grease Monkey International L.L.C. for an undisclosed price.

The sale, effective Jan. 31, provides Greenwood, Colo.-based Grease Monkey with more than 100 franchised SpeeDee-branded shops across the U.S., predominantly in California, Texas, the Gulf Coast, the Mid-Atlantic and New England, TBC said.

Palm Beach Gardens-based TBC acquired the SpeeDee business in March 2012 as part of its $310 million purchase of Midas Inc.

Grease Monkey International is considered one of the nation's largest independent franchisors of automotive fast lube centers, with more than 220 centers the U.S. and 80 more in China and Latin America.

Grease Monkey President & CEO John B. Adams — a former TBC executive — said his company's team is "eager to begin working with franchisees to leverage current relationships, further establish the brand in existing markets and expand horizons in areas yet to be explored."

Mr. Adams worked with TBC for 12 years as head of the Big O Tires franchise business. In all, he was with Big O for 24 years, including 12 before TBC acquired it in 1996.

Erik R. Olsen, TBC chairman, CEO and president, said the deal "provides outstanding opportunities for all parties involved. TBC was able to monetize an asset and will now reinvest in our core franchise, wholesale and retail businesses.

"Grease Monkey adds a powerful brand with industry-leading operational processes and a strong franchise base," he added, "and SpeeDee franchisees will now be part of a larger automotive fast-lube group which will allow them to draw on a focused set of resources to drive growth."

Grease Monkey's focus on the full-service oil change business will assist SpeeDee with growth opportunities, Mr. Olsen said, as the company is well positioned to invest capital in the brand.

Grease Monkey is in the process of looking for a new headquarters after agreeing in October to sell the building it has occupied to Leeds West Groups, a Big O Tires L.L.C. and Midas Muffler Brake Inc. franchisee.

TBC has been dealing with pressure from parent Sumitomo Corp. the past few years to amp up the pace of recovery from a few off years. Sumitomo recorded an "impairment loss" of $181 million for the fiscal year ended March 31, 2015, to account for the reduced net carrying value of TBC.