Sumitomo Corp. of America: No change at TBC, Treadways

Sept. 22, 2005

On Sept. 19, Sumitomo Corp. of America (SCOA) announced its intention to purchase TBC Corp. But why? And how will the company integrate TBC into its domestic infrastructure?

Here are some answers to questions posed by, courtesy of Denis Lenci, a SCOA spokesperson.

Q.: What are Sumitomo Corporation of America's reasons for acquiring TBC Corp.?

A.: "Once completed, the acquisition of TBC will add a leading retailer with an outstanding management team in a steadily growing business segment to our business portfolio. While the retail tire market is new to us, we are engaged in the North American wholesale market for replacement tires through our Treadways subsidiary."

Q.: How will TBC be integrated into SCOA?

A.: "Our plan is to operate TBC as a subsidiary of SCOA. TBC's current management team will continue to direct the business."

Q.: What are your plans for TBC and Treadways?

A.: "Our plan is to keep the two businesses as separate SCOA subsidiaries under their existing managements."

Lenci says SCOA anticipates "business as usual" for TBC franchisees. "TBC's Big O business will continue executing its growth plans."

Sumitomo hopes to complete its acquisition of TBC by the end of the year, subject to approval by TBC's shareholders and anti-trust review, she adds.