The tire supplier TBC Corp. said Tuesday that it has agreed to buy automotive repair chain company Midas Inc. in a cash deal worth about $173 million.
TBC's offer of $11.50 for each Midas share represents a 28 percent premium over Midas' closing price of $8.99 per share on Monday. Midas shares rose $2.46, or 27.4 percent, to $11.45 in morning trading Tuesday.
TBC valued the deal at about $310 million, including the assumption of about $137 million in debt and pension liabilities.
TBC, which is based in Palm Beach Gardens, Fla., supplies replacement tires to independent retailers and distributors in the United States, Canada and Mexico.
Midas, based in Itasca, Ill., provides maintenance and repair service at more than 2,250 franchised, licensed and company-owned Midas shops in 14 countries. It also owns the SpeeDee Oil Change business with 161 auto service centers in the United States and Mexico.
The deal was unanimously approved by the boards of both companies. In addition, Midas' chief executive has pledged to support the deal, TBC said.
TBC said it will begin its tender offer no later than March 28 and the deal, subject to regulatory approval and customary closing conditions, is expected to close by the end of the second quarter.