TBC's Tire Kingdom Subsidiary Acquires 14 Retail Locations
29 December 2000
TBC's Tire Kingdom Subsidiary Acquires 14 Retail Locations; Further Expansion Planned to Gain More Control Over Marketing Channel
MEMPHIS, Tenn.--Dec. 28, 2000--TBC Corporation today announced that in two separate transactions, it has acquired 14 additional retail locations to be operated by its Tire Kingdom subsidiary, the nation's fifth largest independent tire retailer. The new locations represent a geographical expansion for Tire Kingdom into Georgia and Louisiana.Larry Day, President and Chief Executive Officer, remarked, "We are pleased with how the assimilation of Tire Kingdom has proceeded and expect it to be accretive to our earnings per share in 2001. The ongoing expansion of Tire Kingdom is an important component of our corporate growth strategy. The acquisition of these 14 locations brings the total number of company-owned Tire Kingdom locations to 163, up from 148 when we acquired the subsidiary this past June. Tire Kingdom ranks as the largest independent tire retailer in Florida, and our plans are to continue enhancing our competitive presence by opening additional retail service centers. We also have the opportunity to augment this internal growth through strategic acquisitions, both in existing markets and in new areas. The 14 stores we have acquired are in regions contiguous to those we already serve. They represent a logical geographic step forward, and we expect them to add positively to Tire Kingdom's operating income next year.
"As we execute the profitable expansion of Tire Kingdom, we are also accomplishing the goal of increasing our control over more of the marketing channel for our proprietary brands. This higher internalization is a key asset for TBC that, in turn, is helping support our procurement strength with suppliers. We are confident about the growth potential that this strategy offers not only for our direct retail operations but also for our core wholesaling business unit."