Japan's Sumitomo set plans Monday to buy replacement-tire maker
for $35 a share, or $786 million in cash.
The deal is worth a total of $1.1 billion including debt assumption, said Sumitomo. The price offers TBC holders a 34% premium to Friday's closing price.
"We are pleased that the TBC board of directors has approved this transaction," said Susumu Kato, chief executive of New York-based subsidiary Sumitomo Corp. of America. "This is the single largest investment that SCOA has made and complements our portfolio of operating companies. We look forward to working with TBC's existing management team to continue the successful implementation of their long-term business strategy."
TBC operates stores under the Tire Kingdom, Merchant's Tire and Auto Centers and National Tire and Battery banners, and it has franchised retail tire stores under the Big O Tires brand.
Early Monday, TBC rose $8.26 to $34.38.