Business Restructuring of TBC Corporation- Divestment of Midas franchise network, to focus on core businesses -

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno), jointly operates TBC Corporation (“TBC“), a U.S.-based tire distribution company, with Compagnie Générale des Établissements Michelin (Head Office: Clermont-Ferrand, France; “Michelin“). TBC has entered into an agreement to divest its Midas franchise portfolio to Mavis Tire Express Service Corp. (Head Office: New York, U.S.; “Mavis“), which operates a tire retail chain across the United States. Midas Inc. (“Midas”) is an automotive repair and maintenance company under TBC.
This transaction is expected to close in the first quarter of the fiscal year 2025, subject to the approval of the competent authorities. Through this restructuring, TBC aims to focus its management resources on its core businesses, and this transaction is part of that ongoing effort.

TBC distributes tires and provides automotive repair and maintenance services in the U.S., Mexico and Canada. Among its businesses, TBC identifies wholesale, distribution and Big O Tires, tire retail focused franchise portfolio under TBC, as core businesses, leveraging an industry-leading network and scale, whereas Midas activity mostly relies on retail automotive services. The operation will enable TBC to focus on driving accelerated growth and value in its core businesses.

Sumitomo Corporation's Medium-Term Management Plan 2026 announced in May 2024 calls for business portfolio transformation, and this transaction is part of that strategy. The profit from this divestment will be incorporated into the full-year earnings forecast for the fiscal year 2025, which is scheduled to be announced at a later date.

Related Information :
Business Restructuring of TBC Corporation
TBC Corporation Completes Acquisition of Midas Inc.