TBC discusses the possibility of more acquisitions
Since TBC Corp.'s acquisition of Merchant's Tire Inc. this past spring and its subsequent integration of the chain, the Memphis, Tenn.-based tire marketer has "been contacted by several attractive independent tire chains," according to TBC President and CEO Larry Day. "There are many (acquisition) opportunties out there."
TBC is currently evaluating certain proposals, Day said earlier today during a press conference to discuss the company's second quarter performance.
Hypothetically, if TBC were to acquire "a 50 to 75-store chain today, I believe we could integrate that chain into our system (within) a 50 to 60-day time period.
"If that was a 200 to 250-store chain, (integration) could take as long as six months."
TBC's first priority would be "filling in" existing markets with already-solvent organizations. "We're not interested in fixer-uppers," says Day.
TBC also "would like acquisitions to be geographically compatible" with existing TBC retail locations, including its Tire Kingdom Inc. outlets and Big O Tires Inc. franchises.
"We would evaluate any acquisition with both a short-term and long-term view," says Day.
The company has "completely integrated" Merchant's into the Tire Kingdom chain.
"When you buy 112 retail stores" and make various changes, "there's considerable risk, so we wanted to make absolutely certain that the integration plan went perfectly, which it did."
Day has not specificed the potential acquisitions TBC is examining.