Mueller Tire & Brake Agrees to Acquisition by Tire Kingdom

CLEVELAND, Feb. 20 -- Mueller Tire & Brake, one of the largest independent tire retailers in Ohio, will soon become part of one of the largest tire retailers and distributors in the country.

Scott Mueller, chairman of the family-owned company, announced today that the family has signed a letter of intent to sell certain assets of the business and transfer all leases to Florida-based Tire Kingdom Incorporated, a subsidiary of TBC Corp. Terms of the transaction, which is expected to close in March, were not disclosed.

Mueller Tire & Brake's 19 retail outlets -- 15 in Northeast Ohio and four in Columbus -- will continue to offer the same quality and value that have been consistent with the Mueller name for over 80 years. The Northeast Ohio locations will continue to operate under the Mueller name.

``Even as the tire business has been consolidating and many retailers have gone out of business, we have grown from one location with 12 associates to 19 locations with 230 people,'' said Mueller. ``Going forward, however, the retailers that will lead the industry will need to be very efficient and have sufficient capital to sustain growth. Tire Kingdom has the infrastructure and financial resources to build on what we started. More importantly, Tire Kingdom shares the commitment to customer service and employee growth and training that has made Mueller Tire special.''

Orland Wolford, CEO of Tire Kingdom, said, ``For some time we have been looking to enter markets in the Midwest, and to have the right opportunity to align with an organization that has a reputation and commitment to service that matches Tire Kingdom. We fully intend to provide an atmosphere that will allow the associates of both Tire Kingdom and Mueller Tire to achieve their personal objectives, while providing excellent service, products and value to our customers. We are looking forward to retaining many of the Mueller associates, who have been known for delivering great customer service.''

For the past decade, Mueller and his brother, Dean, have maintained a high profile through their folksy and conversational television and radio commercials. As part of its commitment to customer service, the company developed a number of innovative retailing approaches including its ``complete tire price'' and ``complete tire safety'' policies, created new computer programs to keep track of customers' records and installed advanced balancing and alignment systems that do the job faster, with more precision.

The Mueller brothers' grandfather, Walter J. Mueller, started the business in Cleveland in 1918. Their father, Walter D., has been active for over 50 years.

``My grandfather and father instilled in this company a commitment to integrity, value and outstanding customer service,'' said Scott Mueller. ``As a result, many of our associates and customers are our friends, and they have shown tremendous loyalty. We are very pleased that the strong regional company we have built on that foundation will join forces with a very strong company that is growing nationally and shares the same values. Our growth has been based on making it easy for our customers. This, in turn, depends on having committed associates who know what they are doing. Tire Kingdom will not only bring more value to customers, but it will provide tremendous growth opportunities for associates.'' Both Mueller brothers plan to remain active in the Cleveland-area business community and will focus their efforts on other business interests.

Tire Kingdom, based in Riviera Beach, Florida, currently operates more than 185 retail tire and automotive service centers in the Southeast and is growing rapidly through acquisitions. It is a subsidiary of TBC Corporation , one of the nation's largest marketers of automotive replacement tires through a multi-channel marketing strategy. TBC's retail operations include company-owned retail centers under the Tire Kingdom brand and franchised retail stores under the Big O Tires brand. TBC also markets wholesale to customers serving independent tire dealers throughout the United States and in Canada and Mexico.

In Northeast Ohio, Mueller Tire & Brake is located in Downtown Cleveland, Beachwood, Euclid, Hudson, Independence, Lakewood, Lorain, Mayfield Heights, Medina, Mentor, Middleburg Heights, South Euclid, Strongsville, and Westlake, plus a fleet and outlet location in Cleveland.

Columbus-area locations are Downtown Columbus, Sawmill/Interstate 270, Polaris Mall and Reynoldsburg.