TBCC Tbc Corp (MM)

TBC Corporation Completes Acquisition of National Tire & Battery From Sears MEMPHIS, Tenn., Dec. 1 /PRNewswire-FirstCall/ -- TBC Corporation , one of the nation's largest marketers of automotive replacement tires, today announced that it has completed its previously announced acquisition of National Tire & Battery ("NTB") from Sears, Roebuck and Co. . Through 225 retail tire and automotive centers in 20 states, NTB currently generates annual revenues in excess of $425 million. With the acquisition of NTB, TBC increases its store count by approximately 25% to over 1,160 locations. NTB provides TBC entry into new markets including Dallas, Houston, Austin, Chicago, Birmingham, Boston, Kansas City, Philadelphia and Pittsburgh while strengthening the Company's presence in markets such as Cleveland and Columbus, Ohio and the Washington, D.C. metropolitan area. The acquired stores will be integrated into TBC's Tire Kingdom company-operated retail store network, which will now total over 585 locations. TBC also has over 570 franchised tire and automotive service centers under the "Big O Tires" name. Larry Day, TBC President and CEO, stated, "In addition to substantially increasing our store count and expanding our national reach, this acquisition provides us with an excellent opportunity to drive both private brand and major brand tire sales and significantly increase purchasing economies. We welcome all of our new associates to the TBC team and look forward to partnering with Sears over the next six-to-eight months to ensure a smooth transition of NTB's distribution and store support functions away from Sears and into the Tire Kingdom network." The $225 million all-cash transaction was financed through debt and sale/leaseback agreements arranged by JP Morgan. TBC's existing credit facilities were amended to allow for the acquisition as well as an additional $65 million term loan. Of the acquired NTB locations, 89 were properties owned by NTB. Through agreements with Realty Income Corporation, substantially all of the previously owned locations were sold and leased back, with resulting net proceeds to TBC of approximately $134 million. The NTB acquisition is not anticipated to have any material impact on 2003 results but is expected to be accretive to earnings in 2004. TBC's management team is currently finalizing 2004 business plans for its various operating units and will issue a news release on December 15, 2003 regarding the Company's financial outlook for 2004 and the anticipated contribution from the acquired NTB stores. It will also host a conference call on December 15, 2003 at 11:00 a.m. Eastern time / 10:00 a.m. Central time, which will be Webcast at TBC's Web site at http://www.tbccorp.com/. The Webcast will be archived at TBC's Web site until January 15, 2004. About TBC: TBC Corporation is one of the nation's largest marketers of automotive replacement tires through a multi-channel strategy. The Company's retail operations include company-operated retail centers under the "Tire Kingdom", "Merchant's Tire & Auto Centers" and "National Tire & Battery" brands and franchised retail tire stores under the "Big O Tires" brand. TBC markets on a wholesale basis to regional tire chains and distributors serving independent tire dealers throughout the United States and in Canada and Mexico. The Company's proprietary brands of tires have a longstanding reputation for quality, safety and value. TBC Corporation Safe Harbor Statement This document contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995, regarding expectations for future financial performance, which involve uncertainty and risk. It is possible that the Company's future financial performance may differ from expectations due to a variety of factors including, but not limited to: changes in economic and business conditions in the world; increased competitive activity; consolidation within and among both competitors, suppliers and customers; unexpected changes in the replacement tire market; the Company's inability to attract as many new franchisees or open as many distribution outlets as stated in its goals; changes in the Company's ability to identify and acquire additional companies in the replacement tire industry and successfully integrate acquisitions and achieve anticipated synergies or savings; fluctuations in tire prices charged by manufacturers, including fluctuations due to changes in raw material and energy prices, changes in interest and foreign exchange rates; the cyclical nature of the automotive industry and the loss of a major customer or program. It is not possible to foresee or identify all such factors. Any forward- looking statements in this release are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Prospective investors are cautioned that any such statements are not a guarantee of future performance and actual results or developments may differ materially from those projected. The Company makes no commitment to update any forward-looking statement included herein, or to disclose any facts, events or circumstances that may affect the accuracy of any forward-looking statement. Additional information on factors that could potentially affect the Company or its financial results may be found in the Company's filings with the Securities and Exchange Commission. DATASOURCE: TBC Corporation CONTACT: Thomas W. Garvey, Executive V.P. & Chief Financial Officer of TBC Corporation, +1-901-363-8030; Investors, Betsy Brod or Jonathan Schaffer, both of Brod Group, +1-212-750-5800, for TBC Corporation Web site: http://www.tbccorp.com/

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