TBC Corp., a unit of Japan's Sumitomo Corp., will pay $173 million in cash for Midas Inc. (NYSE: MDS), the global automotive repair chain based in Itasca, Ill., said Tuesday.

TBC will acquire Midas, which has 2,300 sites, for $11.50 per share, which represents a 75 percent premium over Midas' closing price on Aug. 11, 2011, when the company announced a strategic review and a 28 percent premium over Monday's closing share price. TBC, which is based in Palm Beach Gardens, Fla., will also assume $137 million in debt and pension liabilities.

TBC, owned by Sumitomo Corp of America, the largest subsidiary of Sumitomo Corp., is a wholesale supplier to tire retailers and distributors, and operates Carroll Tire. Its retail group operates automotive service centers under the brands Tire Kingdom, Merchant's Tire & Auto Centers, NTB-National Tire & Battery and Big O Tires.

The deal is expected to close by the end of the second quarter, subject to regulatory clearance.

Gabelli Funds is Midas' largest shareholder with 22 percent, while CEO Alan Feldman owns 2 percent, Reuters said.

Midas shares jumped $2.45, or 27 percent, to $11.44 in midday trading.