Michelin-Sumitomo group divesting 595 retail shops
TBC Corp. divesting retail network to focus on wholesale, distribution and franchise businesses
Clermont-Ferrand, France – TBC Corp., a tire and automotive repair service group in North America, is divesting its retail operations to focus on core businesses.
The group, owned by Michelin and Sumitomo Corp., agreed 18 April to divest its retail portfolio to New York-based Mavis Tire Express Service Corp (MTESC).
Under the deal, TBC will transfer 595 retail locations to MTESC and also provide wholesale and tire distribution to the purchaser, Michelin said 23 May.
TBC distributes tires and provides automotive repair and maintenance services in the US, Mexico, and Canada.
The US company's wholesale retail and franchise operations include the Midas and Big O Tires businesses.
According to Michelin, TBC identifies the wholesale and franchise operations as core businesses and will focus on these post-divestment.
TBC claims to be “the second largest” player in the North American wholesale market.
Michelin expects to benefit from the operation’s “strong and long-term passenger car and light truck market access”.
The transaction is expected to close in the coming weeks.