Two big announcements for Palm Beach Gardens-based TBC Corporation; new CEO and divest Tire Kingdom Businesses
Read Time 4 MinutesTBC Corporation (“TBC”), one of North America’s leading providers of mobility solutions, announced that it has entered into an agreement to divest its company-owned retail portfolio to Mavis Tire Express Services Corp. (“Mavis”).
For more than 65 years, TBC Corporation has been a company ahead of the curve. In 1956, TBC Corporation began as Cordovan Associates — a small purchasing group of tire retailers in Dayton, Ohio. Through worldwide operations spanning wholesale, retail, and franchise, TBC provides customers best-in-class brands, supply chain as a service, and automotive maintenance and repair services with the underlying mission to exceed customer expectations. TBC serves wholesale customers in the United States, Canada, Mexico, Latin America, Middle East and Europe through TBC Brands, NTW, TBC International, and TBC de Mexico.
Additionally, TBC responds to the needs of individual consumers and fleet customers alike in search of total car care at more than 2,000 franchised and company-operated tire and automotive service centers nationally under the brands NTB, Tire Kingdom, Big O Tires and Midas.
In connection with the transaction, through which Mavis will acquire 392 NTB Tire and Service Centers (NTB) and 203 Tire Kingdom Service Centers (Tire Kingdom), Mavis and TBC have entered into a distribution agreement, through which TBC will provide wholesale and tire distribution for Mavis retail locations. Financial terms of the transaction are not being disclosed.
The 595 NTB and Tire Kingdom stores Mavis is acquiring are in Florida and Texas, as well as other states in the mid-Atlantic, Midwest and South. Upon close of the transaction, Mavis’s retail footprint across all of its brands will span approximately 2,000 locations, including the 112 NTB stores acquired by Mavis from TBC in 2020. All NTB and Tire Kingdom retail store and retail field management associates will have the opportunity to continue their careers with Mavis.
“The announcement represents a significant milestone in the continued acceleration of Mavis’s growth strategy, enabling us to deepen our presence in existing markets and expand our Mavis brand into new markets throughout the Midwest, mid-Atlantic and in Texas,” said Stephen Sorbaro, Co-Chief Executive Officer, Mavis Tire Express Services Corp. “We have a strong working relationship with TBC and a history of successfully integrating NTB locations into our platform, and we look forward to partnering with them again to welcome the talented NTB and Tire Kingdom teams to the Mavis family.”
Kato added, “It was important to us to identify a buyer with an exceptional people-centric culture that aligns with our company values. From our long-term partnership with Mavis, we are confident they are well-positioned to accelerate growth in the NTB and Tire Kingdom businesses as they continue to invest in expanding Mavis’s national footprint.”
The transaction is expected to close in the coming weeks.
“As we execute our growth plans and strategies, we continuously analyze the assets in our portfolio and periodically fine tune them to drive superior performance in our core focus areas,” said Sam Kato, President and Chief Executive Officer, TBC Corporation.
“Divesting our company-owned retail business allows us to focus and strengthen our wholesale business, pursue growing our distribution and ‘supply chain as a service’ solutions, while bolstering our market-leading Midas and Big O Tires franchise businesses. We have never been in a stronger position to offer best-in-class solutions that address a full range of customer priorities while driving innovation and long-term sustainable growth.”
Kato, who served as TBC’s chief administrative officer for the last two years, was announced as the new President and CEO just this month. Kato replaces Laurent Bourrut who is retiring after completing his assignment to position the company for strategic growth amid the evolution of the tire industry. Bourrut will remain an executive advisor to Kato and TBC.
Kato is a veteran of global automotive businesses for more than 30 years. He served as a director of the board of TBC Corporation from 2015 until 2018 when he was leading Sumitomo Corporation of Americas transportation businesses. Kato was an instrumental part of the Sumitomo leadership team that formed a strategic 50/50 joint venture with Michelin North America, Inc., in 2018 to create the current TBC Corporation. As TBC’s first chief administrative officer, Kato maintained responsibility for legal and compliance, human resources, IT, digital, corporate strategy and communications.
His appointment by the TBC Board of Directors to president and chief executive follows a strategic plan developed in collaboration with Bourrut.
Prior to his appointment as president and chief executive officer of TBC, Bourrut worked at Michelin for nearly 14 years in various roles of increasing responsibility culminating as executive vice president in charge of the worldwide road transport and distribution business lines, as well as operations of the European Region. He also served as a member on the Groupe Executive Committee.