Chicago Sun Times - September 23, 2003
Sears Roebuck and Co. CEO Alan Lacy continued to dismantle his predecessor's strategy Monday by selling the National Tire & Battery (NTB) chain to the country's largest independent tire retailer and, in the process, opening the way for a new Chicago area rival to Sears' auto centers. TBC paid $260 million through debt financing for the 226-store NTB chain, including inventory worth about $35 million.
TBC Corp., based in Memphis, Tenn., won a bidding war to acquire the 226-store NTB chain, which generates more than $425 million in yearly sales. The deal, which must clear federal anti-trust regulators, is expected to close by Dec. 1.
The company also will sell the land that Sears owns under 90 of the NTB stores lease it back from a real estate company under a sale-leaseback.
Sears will record a pre-tax gain of $50 million to $100 million in the fourth quarter from the NTB sale. The proceeds will boost Sears' cash balance and presumably help it pay to build more Sears Grand stores.
Sears also is reportedly seeking to sell its Orchard Supply hardware stores.
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Tuesday, September 23, 2003
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