Discount Tire boosts digital capabilities with acquisition
A leading retailer of tires and wheels is purchasing an independent tire tester and consumer-direct source for tires, wheels and accessories.
Discount Tire is acquiring Tire Rack. Founded in 1960 and privately held, Discount Tire 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.
Discount Tire has been expanding its omnichannel offerings. In April 2021, the company deployed a proprietary tire tread depth-reading mobile solution it co-developed with Anyline and Accucode, based on the Zebra Android-based TC75x mobile computer. Technicians swipe each tire to check for tread depth and scan the DOT code with the tool’s camera in real time, designed to enable them to assist more customers and reduce wait times.
The retailer also needs to keep pace with many other companies that are creating digital tools aimed specifically at aiding tire shoppers. In addition to a variety of digitally native and small specialty retailers, large organizations including Walmart, Advance Auto Parts and eBay Motors have all launched digital tire shopping applications.
"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."
"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 employees 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."
Based in Scottsdale, Ariz., and legally named The Reinalt-Thomas Corporation, Discount Tire operates 1,100 stores in 37 states. The company does business under the trade name Discount Tire in most of the U.S. and America's Tire in parts of California. Tire Rack, family-owned and headquartered in South Bend, Ind., is an independent tire tester and consumer-direct source for tires, wheels and performance accessories that operates 10 distribution centers across the country.
Discount Tire CEO Dean Muglia will continue as CEO of Discount Tire. Mike Joines, with 42 years leading Tire Rack, 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 to oversee the company's digital sales and online customer experience, and partner with Discount Tire on integration efforts. The Veldman family, founders of Tire Rack, will have representation on the board of directors of Discount Tire.
Tire Rack will become wholly-owned by Discount Tire, also a privately held, family-owned business, at closing. Tire Rack employees will be integrated into Discount Tire, with the Tire Rack headquarters being maintained in South Bend, Ind. The transaction is expected to close on December 31, 2021.