EVANSVILLE, Ind. (Dec. 5, 2006) — Raben Tire Co. Inc. of Evansville is acquiring the assets of Disney Tire and Rubber Co. Inc. for an undisclosed amount.
The deal, subject to final approvals and agreements, is scheduled to close Dec. 31.
Louisville, Ky.-based Disney Tire is a distributor of Summit, Remington, Hercules and other private brand tires with four distribution centers in Louisville, Indianapolis, Nashville and Knoxville, Tenn.
Raben Tire operates 31 locations throughout the Midwest including seven commercial centers, 14 commercial/retail stores, five retail stores, three retread plants and two warehouses. The dealership, which posts $117 million in annual sales, offers BFGoodrich, Continental, Cooper, Dunlop, General, Goodyear, Kelly and Michelin brands.
“Both businesses have a long history of serving the needs of independent tire dealers in the Midwest and Midsouth regions, and I believe Raben Tire will be able to build on that tradition with great brands, robust dealer programs and strong growth,” said Raben Tire President Tom Raben.
The Disney and Raben product lines will be combined under the Raben Tire banner, and Disney Tire President Steve Disney will be responsible for the combined wholesale unit. The companies said they will see immediate benefits from the unification including access to complete lines of consumer, commercial, agricultural, specialty tires and retreads.
“It's a very good strategic fit in that their strengths are something that our dealers will benefit from and vice versa,” Mr. Disney told Tire Business. “They're very strong in the major brand programs and they're very strong in being represented in all types of product segments, whereas we have been primarily private brand and consumer products.”
Mr. Disney declined to discuss annual sales but said “the time was right and the opportunity was excellent” for the deal especially when other industry wholesalers have consolidated and become larger and larger to compete against.
“The combined entity will be stronger and more effective and efficient than either of us could have been as separate parties,” he said. “Ultimately, that's why a deal like this makes sense.”