Midas Agrees to Be Acquired by TBC for $173 Million in Cash Deal

Midas Inc. (MDS), the operator of its namesake and SpeeDee automotive service centers, agreed to be acquired by tire supplier TBC Corp. for about $173 million, joining a group that includes the Tire Kingdom chain.

The cash offer of $11.50 a share is 28 percent higher than Midas’s closing price yesterday and 75 percent higher than its closing price on Aug. 11, when Midas announced it was exploring options such as a possible sale. The transaction includes the assumption of $137 million in debt and pension liabilities, the companies said today in a statement.

The purchase gives closely held TBC a chain with more than 2,250 franchised, licensed and company-owned Midas shops in 14 countries. The deal has been approved by both boards, the companies said.

In January, Midas rival Pep Boys -- Manny, Moe & Jack, agreed to go private in an acquisition by the Gores Group LLC valued at about $791 million. That deal was the largest in the auto-parts retailing sector since 2008, according to data compiled by Bloomberg.

TBC, based in Palm Beach Gardens, Florida, is owned by Japan’s Sumitomo Corp. (8053) TBC’s retail group operates more than 1,200 franchised and company-owned tire and automotive service centers under brands such as Tire Kingdom and Merchant’s Tire & Auto Centers.

Midas, based in Itasca, Illinois, jumped 27 percent to $11.44 at 7:50 a.m. in New York. The shares had gained 4.7 percent this year before today.

To contact the reporters on this story: James Callan at Jcallan2@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net