Palm Beach Gardens, Florida —TBC Corp. has confirmed it plans to acquire the tire inventory from Memphis-based Del-Nat Tire Corp. along with certain other assets, including the ownership of all Del-Nat brands and trademarks.
The parties did not disclose financial terms of the deal.
“The acquisition of Del-Nat’s inventory, brands, and trademarks is good for TBC and its good for Del-Nat members,” said TBC executive vice president Marty Krcelic.
“We expect this transition to be smooth and seamless as we will continue to offer both warehouse and factory-direct programmes to Del-Nat members,” said Krcelic, adding that TBC would modernise and help grow the Delta and National brands.
The US government’s countervailing duty rate of 81.29 percent on Shandong Yongsheng Rubber Group, which produces most of Del-Nat’s Sentinel-brand tires, has been one of the main financial difficulties of Del-Nat.
The terms of the countervailing duties include a 90-day retroactive liability, which Del-Nat said in its case would total about $4 million (€3.4 million).
In addition to that, a decision by the US Commerce Department on 21 Jan imposes another 87.99 percent anti-dumping levy on Shandong Yongsheng which is likely to add to financial difficulties of Del-Nat.
TBC’s proprietary brands include: Cordovan, Duck Commander, DynaCargo, ElDorado, Harvest King, Jetzon, Multi-Mile, Power King, Sigma Telstar, Towstar, Towmax, Trailer King and Vanderbilt. The company also is the exclusive importer/distributor of the Sailun and Sumitomo brands.
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