TBC Corp. Gets the Midas Touch
Auto repair chain Midas (NYSE:MDS) has agreed to be bought by TBC Corp., a unit of Japan’s Sumitomo Corp., for $173 million in cash. TBC’s offer of $11.50 per share represents a 28 percent premium on the stock’s closing price of $8.99 on Monday. TBC will also assume $137 million of Midas’ debt and pension liabilities.
TBC supplies automotive replacement tires to retailers and distributors in the United States. Midas provides brake, maintenance, exhaust, and suspension services at over 2,250 franchised, licensed, and company-owned shops in 14 countries. Nearly 1,500 of those shops are in the U.S. and Canada.
The deal is expected to close by the end of the quarter. Midas CEO Alan Feldman, who owns a 2 percent stake in the company, has signed an agreement in support of the offer. Midas has agreed not to solicit any competing offers.
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