Automotive service chain Midas to be acquired by tire supplier TBC

Midas Inc., the operator of its namesake and SpeeDee automotive service centers, agreed to be acquired by tire supplier TBC Corp. for about $173 million, joining a group that includes the Tire Kingdom chain.

The cash offer of $11.50 a share is 75% higher than Midas’ closing price Aug. 11, when it announced that it was exploring options such as a possible sale. The transaction includes the assumption of $137 million in debt and pension liabilities, the companies said Tuesday.

The purchase gives closely held Palm Beach Gardens, Fla.-based TBC a chain with more than 2,250 franchised, licensed and company-owned Midas shops in 14 countries. The deal has been approved by both boards, the companies said.

Shares of Itasca, Ill.-based Midas jumped $2.45, or 27%, to $11.44 on Tuesday.

In January, Midas rival Pep Boys agreed to go private in an acquisition by the Gores Group valued at about $791 million. That deal was the largest in the auto-parts retailing sector since 2008, according to data compiled by Bloomberg.