This JV in the US to change the rules of wholesale tyre market
The wholesale tyre market in the United States is all set to witness a major change. French tyre maker Michelin and Sumitomo Corporation have formed a Joint Venture (JV) creating the second-largest player in the wholesale tyre market in the United States. The JV company will operate under the new NTW brand and Erik R Olsen, President and Chief Executive Officer of TBC, will be the CEO. President & COO of TCi Don Byrd will lead the newly formed NTW wholesale business in the same capacity.
The company will provide better availability of tyre products at all price points across North America.
Through the joint venture, TCi Wholesale and TBC will be combined. Based upon the enterprise value of each business ($160m for TCi Wholesale and $1,520m for TBC), Michelin would contribute a cash payment of $630 million to SCOA and TCi Wholesale to equalize ownership in the JV.
The partnership will bring together MNAI’s TCi with more than 85 locations across the US, with SCOA’s TBC with 59 wholesale distribution centres and more than 2,400 North American retail locations.
“The partnership with SCOA will better position us to serve our retail customers and ensure that consumers have access to our products when and where they need them. With this partnership, we can offer an expanded geographic footprint, a broader breadth and depth of product choices and better availability and increased delivery frequency. It will also allow us to provide better and faster service to our direct customers through an enhanced delivery service programme,” said Scott Clark, Chairman and President of MNAI.