TBC Reports Successful Completion of Mueller Tire & Brake Acquisition
MEMPHIS, Tenn., April 4 -- TBC Corporation, one of the nation's leading marketers of automotive replacement tires, today reported the successful completion of its acquisition of Mueller Tire & Brake, one of the largest independent tire retailers in Ohio. Exact terms of the transaction were not disclosed.
Mueller operated 19 retail tire and automotive service centers in Northeast Ohio and Columbus. With the successful completion of the deal, the Mueller stores have now become part of TBC's Florida-based subsidiary, Tire Kingdom.
Commenting on the transaction, Larry Day, TBC President and Chief Executive Officer, remarked, ``This acquisition serves as an immediate entry for Tire Kingdom into markets in the midwestern United States. Until now, our Tire Kingdom operations have primarily served replacement tire and automotive service needs in the southeastern United States. From the time TBC acquired Tire Kingdom in June 2000, one of our goals has been to expand its geographic reach outside the Southeast. The Mueller retail outlets give us that expanded retail presence and are also a nice fit operationally, since they too have a reputation for delivering superior customer service and an outstanding value to consumers. The addition of the Mueller locations brings the total number of Tire Kingdom stores at the end of March to 204, compared to 182 at the end of 2001. That store count will continue to grow, as we execute our stated plan of adding at least 20 new company-operated stores during 2002, exclusive of acquisitions.''
Continued Day, ``I am extremely pleased with the seamless manner in which the acquisition was handled. The newly-added stores have already been integrated into the Tire Kingdom system and the lines of private and major brand tires carried by Tire Kingdom's existing stores are now available for consumers in the new stores. Our ability to complete this transaction and immediately assimilate these 19 additional stores into our system validates my belief that we have the right operational infrastructure and management team in place. One of the goals of our retail expansion strategy is for acquisitions to be accretive to earnings within one year and I am more confident than ever in our ability to meet that goal.''
About TBC: TBC Corporation is one of the nation's largest marketers of automotive replacement tires through a multi-channel marketing strategy. The Company's retail operations include company-operated retail centers under the Tire Kingdom brand and franchised retail tire stores under the Big O Tires brand. TBC also markets on a wholesale basis to regional retail tire chains and regional distributors serving independent tire dealers throughout the United States and in Canada and Mexico.