Discount Tire to acquire Tire Rack

SCOTTSDALE, Ariz. — Tire and wheel retailer Discount Tire will acquire Tire Rack Inc., an independent tire tester and online direct-consumer tire retailer, the company announced Dec. 3.

The transaction is expected to close Dec. 31, Discount Tire said. Financial details were not disclosed.

"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," Michael Zuieback, executive chairman of the Discount Tire board of directors, said in a statement.

"We were attracted to Tire Rack for the vision they share with Discount Tire in transforming the omni-channel, 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."

Discount Tire/America's Tire is ranked as the second largest independent retailer in the U.S. with 1,113 stores and annual sales of $5.17 billion in 2020, according to Tire Business research.

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 Tire Rack executive team and management team will continue in their roles.

The Veldman family, founders of Tire Rack, will have representation on the Discount Tire board of directors.

Discount Tire CEO Dean Muglia will remain in his position, the company added.

"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," Mr. Muglia said.

"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 omni-channel strategy, provides a broader distribution network and a platform to enhance our B2B and fleet capabilities. Quite simply, we are better together."

Discount Tire, founded by Bruce T. Halle in 1960, said it 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, legally named The Reinalt-Thomas Corp., does business as Discount Tire in most of the U.S., America's Tire in parts of California, and Discount Tire Direct online.

Tire Rack was founded by Peter and Wilma Veldman along with Mr. Joines in 1979 in Indianapolis. As of Oct. 31, privately held, family-owned Tire Rack employed more than 950 people.

It will become wholly owned by Discount Tire, also a privately held family-owned business, at closing, the company announced.

Tire Rack employees will be integrated into Discount Tire with the Tire Rack headquarters being maintained in South Bend, Ind., the company said.

"We believe we can provide a greater impact through better service to customers who have chosen Tire Rack for their tire and wheel needs and provide better opportunities for our team members through this partnership," Mr. Joines said.

"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."