Midas, Uni-Select Sign Agreement for Supply of Walker Exhaust to Midas Shops in Canada
ITASCA, Ill.--(BUSINESS WIRE)--Dec. 16, 2005-- Midas, Inc. (NYSE:MDS) and Uni-Select, Inc. (TSX:UNS) of Boucherville, Quebec, Canada, have entered into an agreement appointing Uni-Select as the exclusively endorsed supplier of Tenneco Automotive, Inc.'''s (NYSE:TEN) Walker-brand exhaust products to more than 200 Midas shops in Canada.
The Walker products replace Midas-brand exhaust products that had been manufactured by Midas and sold to Uni-Select. Midas closed its exhaust manufacturing plant in Hartford, Wisc., in September 2005.
In early 2006, Uni-Select will begin a region-by-region transition of Midas shops in Canada to Walker products for stocking shipments. Midas shops also may purchase Walker exhaust from Uni-Select locally on a just-in-time basis.
"The agreement ensures a continuing supply of high quality, competitively priced exhaust products, as well as the continuing consumer product warranties on exhaust services at Midas shops," said Alan D. Feldman, Midas' president and chief executive officer.
The transition to Walker products is expected to be completed by the end of the first quarter 2006. At that time, Midas will close its exhaust distribution center in Chicago, which will complete its exit from the parts distribution business.
In 2003, Midas closed 11 of its 12 distribution centers in North America and transferred responsibility for parts distribution to Uni-Select in Canada and AutoZone (NYSE:AZO) in the United States. Midas continued to operate the Hartford exhaust plant and the Chicago warehouse to distribute exhaust products to AutoZone and Uni-Select, which in turn, distributed them to Midas shops.
Last May, Midas reached an agreement with AutoZone and ArvinMeritor (NYSE:ARM) to supply Arvin-brand exhaust to the 1,600 Midas shops in the United States. That transition will be completed by the end of December.
"The agreement with Uni-Select is the final step for Midas to complete the process we began in April 2003 to withdraw from the parts manufacturing and distribution business," Feldman said.
"Midas now has strategic supply chain partnerships in place to provide a full range of brake, exhaust, suspension, maintenance and tire products to support the continuing growth of the Midas retail system," he said.
Midas is one of the world's largest providers of automotive service, offering brake, exhaust, maintenance, tires, steering and suspension services at more than 2,600 franchised, licensed and company-owned Midas shops in 19 countries, including 1,800 in the United States and Canada.
NOTE: This news release contains certain forward-looking statements that are based on management's beliefs as well as assumptions made by and information currently available to management. Such statements are subject to risks and uncertainties, both known and unknown, that could cause actual results, performance or achievement to vary materially from those expressed or implied in the forward-looking statements. The company may experience significant fluctuations in future results, performance or achievements due to a number of economic, competitive, governmental, technological or other factors. Additional information with respect to these and other factors, which could materially affect the company and its operations, is included in the company's filings with the Securities and Exchange Commission, including the company's 2004 annual report of Form 10-K.
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