From Tire Review.com
NEW YORK — TBC Corp. is selling its entire business – retail stores, franchise operations, private brands and wholesaling – to Sumitomo Corporation of America (SCOA) for approximately $1.1 billion, including TBC’s accumulated debt. The cash sale deal, at $35 per share of the publicly traded TBC, was announced yesterday.
The transaction is subject to approval by TBC shareholders. TBC will become a subsidiary of SCOA, and its current management team will remain in place, according to Sumitomo.
SCOA also owns Treadways Corp., an East Norriton, PA-based private brander and tire wholesaler.
“We are pleased that the TBC board of directors has approved this transaction,” said SCOA President and CEO, Susumu Kato. “This is the single largest investment that SCOA has made and complements our portfolio of operating companies. We look forward to working with TBC’s existing management team to continue the successful implementation of their long-term business strategy.”
“Our shareholders will receive a significant premium over current and historic trading levels, and the Board is recommending shareholder approval of this transaction,” said TBC President and CEO Larry Day. “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. As our board considered all the strategic and financial alternatives, it became clear that this transaction was in the best interest of all TBC stakeholders.”
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