Continental has acquired Hoosier for an undisclosed sum
Germany’s Continental AG has acquired US-based tyre specialist Hoosier Racing Tire for an undisclosed sum. The deal to purchase the formerly privately-owned company was completed on 3 October. The acquisition of Hoosier Racing Tire follows seven years of collaboration with Continental, during which time the two companies worked together on various development and motorsport projects.
In a statement announcing the acquisition, Continental asserted that the transaction “will create significant opportunities” for the almost 500 Hoosier employees and also for employees of Continental Tire the Americas. “This acquisition showcases the consequent execution of our long-term growth strategy Vision 2025, characterised by strategic planning and systematic implementation of technological progress,” states Nikolai Setzer, head of Continental’s Tire business. “The acquisition of Hoosier Racing Tire is an exciting next addition to our product portfolio and will support our growth strategy, especially in the ultra-high performance segment.”
Dr Jochen Etzel, chief executive officer of Continental Tire the Americas, adds: “Hoosier’s management team has built an impressive business. We believe Hoosier Tire is well-positioned to continue its strong growth, and we look forward to supporting that development through our complementary knowledge and extensive footprint. Hoosier’s management team will continue to run the racing tyre business. We are committed to the employees, and the communities in which Hoosier operates. We look forward to the future of working together to accelerate growth.”
Hoosier Racing Tire was founded in 1957 by former racing driver Bob Newton and his wife Joyce; Bob is said to have taken the step into tyre production as he was dissatisfied with the hard-compound road tyres then used in competition. The first soft-compound tyres the Newtons produced were retreaded in an abandoned horse barn, with both slick and treaded versions available. New tyre production began in the 1960s. Today the company remains based in the US state of Indiana and is considered one of the largest manufacturers of racing tyres in the world.
“Continental and Hoosier share a similar vision for continued growth and sales excellence,” comments Joyce Newton, co-founder, president and chief executive officer of Hoosier Racing Tire. “Hoosier has fantastic brand recognition, a high-performing team, established customer relationships and a great line-up of products. This acquisition will provide a stronger and more sustainable organisation for Hoosier moving ahead.”
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