TBC Corporation, jointly owned by Japan’s Sumitomo Corporation and France’s Michelin, has agreed to sell its Midas franchise portfolio to Mavis Tire Express Service Corp. as part of a strategy to streamline operations and focus on core businesses.
The transaction, expected to close in the first quarter of fiscal 2025 pending regulatory approvals, will allow TBC to concentrate on its tire wholesale, distribution, and Big O Tires franchise operations. The sale should have a positive impact of approximately $200 million on Michelin Group’s 2025 net earnings.
Midas currently operates approximately 2,000 franchised and licensed stores across about 20 countries, including nearly 1,200 franchised locations throughout the United States and Canada. Once completed, the acquisition will expand Mavis’s retail footprint to roughly 3,500 stores across the U.S. and Canada.
The deal marks the third transaction between TBC and Mavis in recent years. In June 2023, Mavis acquired 595 NTB Tire & Service and Tire Kingdom retail store assets from TBC, significantly expanding its market presence.
TBC has been gradually restructuring its business portfolio since at least 2023, when it began divesting company-owned retail operations to concentrate resources on wholesale distribution and franchise businesses with stronger profit potential.
The sale aligns with Sumitomo Corporation’s Medium-Term Management Plan 2026, announced in May 2024, which calls for business portfolio transformation. Financial details of the Midas divestment were not disclosed, though Sumitomo indicated that profits from the sale will be incorporated into its full-year earnings forecast for fiscal 2025.
