PHOENIX (August 1, 2000) — Warehouse distributor PDK Inc. of Merrillville, Ind., has purchased Cragar Industries Inc.´s remaining inventory of custom wheels and wheel accessories and will serve as a clearinghouse for Cragar one-piece cast aluminum wheels and other products left discontinued after Cragar´s recent restructuring.
PDK paid $1.5 million for approximately 8,000 wheels and accessories not acquired previously by Weld Racing Inc. and Carlisle Tire & Wheel Co. in separate deals last year.
This supply is the last stock of one-piece Cragar wheels, a company spokesman said, and the companies have no immediate plans to source new ones once these are sold. PDK will, however, stock Cragar´s classic lines — S/S, Keystone Klassic and Street Stars — being made by Carlisle.
Following financial difficulties in 1998 and 1999, Cragar retrenched its business, becoming primarily a licensor of the Cragar name and brands. Weld Racing took over production and distribution of Cragar´s non-cast wrought aluminum alloy outer rims and accessories, while Carlisle has a license to produce and sell the Cragar line of steel outer rim wheels and accessories.
"Cragar´s strong brand equity and reputation for quality products and PDK´s leading position in middle America for distributing aftermarket wheels is a winning combination," said PDK President Phil Potocki, in a prepared statement.
PDK has added the Cragar line to its existing range of wheels, which includes Arelli, Focal, Lexani, Luxor Wire, Sport Metal, Ultra and US Wheel. PDK also distributes the Vogue Tyre line.
A 6-year-old venture, PDK recently opened a second warehouse in Indianapolis and is contemplating further expansion in the Midwest.