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TBC To Acquire Tire Distributor

24 July 1998

TBC To Acquire Largest Distributor

    MEMPHIS, Tenn.--July 24, 1998--TBC Corporation today announced that it has agreed in principle to acquire substantially all the capital stock of Carroll's, Inc., a privately-owned wholesale distributor of tires and automotive accessories. Terms were not announced for the acquisition which remains subject to customary closing conditions, including provisions of the Hart-Scott-Rodino legislation. Carroll's, Inc., based in Atlanta, Georgia, generates annual sales of approximately $150 million. Purchases by Carroll's, Inc. accounted for approximately 11% of TBC's net sales of $642.9 million for 1997.
    Louis S. DiPasqua, President and Chief Executive Officer of TBC, remarked, "This transaction provides the opportunity to purchase a highly successful distribution operation that has been a business partner with TBC for nearly 30 years. Founded in 1960, Carroll's serves more than 5,000 independent dealers through 15 distribution facilities in a four-state area that includes portions of Georgia, Alabama, Florida and South Carolina. We are excited about the prospects for working with this proven management team to build on the strong brand presence that has been developed for our tires in the Southeast."
    DiPasqua remarked, "Our longer term record of growth has been accomplished by developing strong working relationships with regional distributors who, in turn, supply independent tire dealers. We intend to continue relying on this fundamental approach. Independent dealers remain the dominant marketing factor in the retail tire aftermarket, and we want to take advantage of the most effective means for serving them."
    TBC Corporation is one of the nation's largest marketers and distributors of tires for the automotive replacement market.