Discount Tire to acquire South Bend-based Tire Rack, bringing together big industry names
SOUTH BEND — Two of the nation’s most recognizable names in tire retailing and wholesaling plan to combine forces at the end of the year.
Discount Tire, which operates about 1,100 retail stores in the United States, says it is purchasing South Bend-based Tire Rack. The company says it won’t change Tire Rack’s name, the headquarters location or staffing.
Matt Edmonds, executive vice president of Tire Rack, described the deal with Discount Tire as a positive move for employees and the South Bend area, as it will allow both family-owned businesses to continue growing.
With about 1,100 stores in 37 states, Discount Tire is one the largest independent tire retailers in the nation, while Tire Rack has distinguished itself for its online shopping experience and tire research.
“The only change we’re going to see is growth,” said Edmonds. “The two businesses are complementary.”
Tire Rack, which is at 7101 Vorden Parkway, employs just under 1,000 workers nationwide — including about 600 in South Bend — and has 10 distribution centers, with about 2.9 million square feet of space across the country.
But it lacks retail centers like those operated by Discount Tire. Instead, Tire Rack offers installation through recommended installers nationwide and through ASAP Tire – its relatively new mobile installation business.
Tire Rack also sells directly to automobile dealerships and other companies.
Conversely, Discount Tire, which was founded in Ann Arbor but is now headquartered in Scottsdale, Ariz., has bricks-and-mortar locations across the country, including several in Michiana.
"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," Tire Rack CEO Mike Joines said in a release.
Dean Muglia will continue as CEO of Discount Tire. Joines will continue leading Tire Rack, along with Edmonds and Mark Veldman from Tire Rack’s executive team.
Discount Tire was founded in 1960 by Bruce Halle. Tire Rack was founded in 1979 by Peter Veldman and Joines, his son-in-law.
Muglia said the two businesses share similar business philosophies and history.
“Quite simply, we are better together,” he said.
The combined companies will have about 25,000 employees.
“The Tire Rack executive team and management team will continue in their roles to advance the company's digital sales and online customer experience and partner with Discount Tire on integration efforts,” according to a release. “The Veldman family, founders of Tire Rack, will have representation on the board of directors of Discount Tire.”
Jeff Rea, president and CEO of the South Bend Regional Chamber of Commerce, said such deals often don't work out well for Michiana because the acquiring entity forgets the promises that are made initially.
"But this one could be different," said Rea. "It sounds like the leadership team is going to be well integrated, and the fact that they want to maintain headquarters here might give Tire Rack the opportunity to grow in South Bend."
Rea also noted that Tire Rack and the Tire Rack family are major supporters of community-wide efforts.
South Bend-based Asante Foundation, which isn't connected to the company but is overseen by family members at the core of Tire Rack, distributes hundreds of thousands of dollars to a wide variety of causes in the area.
Some of those organizations include the Food Bank of Northern Indiana, Beacon Health, St. Joseph Hospital, Holy Cross missions, the Center for the Homeless, the Logan Center, the Women's Care Center, the Community Foundation of St. Joseph County and the United Way.
Edmonds said Discount Tire and Tire Rack share similar philosophies when it comes to its customers, its employees and the communities they serve.
"We're not going anywhere," he said.
This article originally appeared on South Bend Tribune: Discount Tire chain will acquire South Bend-based Tire Rack by Dec. 31
