Michelin and Sumitomo Corporation to Create Second-Largest Wholesale Player in the U.S. and Mexico

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TBC Corp

About the joint venture

Michelin North America Inc. (MNAI) and Sumitomo Corporation of Americas (SCOA) today announced a definitive agreement to combine their respective North American replacement tire distribution and related service operations in a 50-50 joint venture, forming the second-largest player in the wholesale tire market in the United States.

The combined wholesale unit will operate under a new brand, NTW, and will be one of the operating companies of TBC Corporation. This new company will provide better availability of tire products at all price points across North America, achieving greater scale in wholesale delivery for customers. The JV also will enable the two companies to enhance service quality, capacity and speed for customers.

The partnership will bring together MNAI’s TCi, the fourth largest wholesale tire and service network in the United States, with more than 85 locations across the U.S., with SCOA’s TBC, one of the nation's largest vertically integrated marketers of tires for the automotive replacement market, with 59 wholesale distribution centers and more than 2,400 North American retail locations.

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Benefits of the joint venture

Allows TBC, through the joint venture, to be a more competitive player in the growing North American tire wholesale and auto services sector, enabling growth in critical North American markets.

Enables both companies to more effectively satisfy the needs of online consumers by combining distribution, reach and speed.

Provides a foundation for coast-to-coast coverage of car and light truck service providers, addressing trends of growth in fleet maintenance and increasing complexity of service requirements and tire sizes.

Increases the companies’ market share and operational scale, positioning the joint venture for faster growth.

With this partnership, we can offer an expanded geographic footprint, a broader breadth and depth of product choices and better availability and increased delivery frequency. It will also allow us to provide better and faster service to our direct customers through an enhanced delivery service program.

Scott Clark, Chairman and President of Michelin North America Inc.

This joint venture further supports our mobility strategy in this new, dynamic era in the automotive landscape. In addition to the competitive edge this joint venture provides in the distribution arena, we believe Michelin's successful experiences in mobility services will add value to TBC.

Sam Kato, Senior Vice President and General Manager of the Auto and Aerospace Group at SCOA.

Brands include

Logo - Merchants Logo - NTB Logo - Tire Kingdom Logo - Midas Logo - Big O Tires Logo - TBC Brands Logo - TBC International Logo - TBC Mexico Logo - R.O. Writer
Logo - Carroll + Logo - TCI = Logo - NTW

Key facts

  • TCi and Carroll Tire, the 4th and 5th largest wholesale distributors, respectively, will be combined to form the 2nd largest wholesale distributor in the US, under NTW
  • 92 metropolitan areas will have access to NTW wholesale distribution centers
  • TBC is one of the largest wholesale distributors in the growing Mexican market, with 43 distribution centers

Leadership

  • Erik R. Olsen
  • President & Chief Executive Officer
  • TBC Corporation
  • Glen Gravatt
  • President, TBC Purchasing & Distribution Division
  • Timothy J. Miller
  • Executive Vice President and Chief Financial Officer & Treasurer
  • TBC Corporation
  • Shingo Aso
  • EVP, Corporate Development
  • TBC Corporation
  • Don Byrd
  • EVP – TBC Corporation
  • President & COO – National Tire Wholesale
  • Marty S. Krcelic
  • EVP – TBC Corporation
  • President & COO – TBC Wholesale
  • Brant Wilson
  • EVP – TBC Corporation
  • President & COO – TBC Franchise Group
  • Terri Hoskins
  • SVP, Chief Human Resources Officer
  • TBC Corporation
  • Brian Maciak
  • Senior Vice President, General Counsel and Secretary
  • TBC Corporation

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