Discount Tire buys Tire Rack
Discount Tire, a leading independent tyre and wheel retailer in the US is acquiring Tire Rack, which is known for its tyre tests and is a “consumer-direct source for tyres, wheels and performance accessories”. According to the company, the investment is part of Discount Tire’s vision of creating an “Easy, and Safe omnichannel, B2B, and fleet customer experience”. The transaction is expected to close on 31 December 2021.
Discount Tire chief executive officer Dean Muglia, a 32-year veteran of the business, will continue as CEO of Discount Tire. Mike Joines, who has led Tire Rack for 42 years, will join the combined organization as CEO of Tire Rack along with Matt Edmonds and Mark Veldman of Tire Rack’s executive team. The Veldman family, founders of Tire Rack, will have representation on the Board of Directors of Discount Tire.
Discount Tire, which was founded by Bruce T. Halle in 1960 and remains privately held, intends to continue to use the Tire Rack brand name as tirerack.com online, TR Wholesale Solutions in car dealer and wholesale channels, and Tire Rack Mobile Installation in the mobile installation arena. The company, which is legally named The Reinalt-Thomas Corporation, currently does business as Discount Tire in most of the US, America’s Tire in parts of California, and Discount Tire Direct online. It has around 1,100 tyre retail physical locations in total.
Tire Rack was founded by Peter and Wilma Veldman along with Mike Joines in 1979 in Indianapolis, Indiana, and grew rapidly as one of the most respected sources of information for online buyers of tyres, wheels and accessories. As of 31 October 2021, privately held, family-owned Tire Rack employed more than 950 Team Members. It will become wholly owned by Discount Tire, also a privately held family-owned business, at closing. Tire Rack Team Members will be integrated into Discount Tire with the Tire Rack headquarters being maintained in South Bend, Indiana.
“We have for many years admired one another from afar, each pushing the industry forward to meet customers where they are most confident shopping for tires and wheels,” said Dean Muglia, CEO at Discount Tire. “We could not be more excited about adding Tire Rack’s operations and its excellent team led by Mike Joines, who I’ve come to know well. This accelerates our omnichannel strategy, provides a broader distribution network and a platform to enhance our B2B and fleet capabilities. Quite simply, we are better together.”
“The acquisition of Tire Rack is a natural pairing of two storied, family-owned brands that built thriving businesses by treating people how they want to be treated, and focusing on delivering the best possible experiences for our people and our customers,” said Michael Zuieback, Executive Chairman of the Board of Directors at Discount Tire. “We were attracted to Tire Rack for the vision they share with Discount Tire in transforming the omnichannel, B2B and fleet customer experiences. We are excited to collaborate on enhancing the tools and technologies that will advance an entire industry. Together, we will make more dreams come true for all our wonderful people.”
“We believe we can provide a greater impact through better service to Customers that have chosen Tire Rack for their tire and wheel needs and provide better opportunities for our Team Members through this partnership,” said Mike Joines, Tire Rack CEO. “Joining the Discount Tire family is an incredible milestone for our business, an opportunity for our Team Members and a testament to the hard work and legacy of Pete and Wilma Veldman. We’re thrilled to become a part of Discount Tire, a company that serves customers through an Inviting, Easy, and Safe experience while also taking care of and valuing their Team Members.”