Stout has advised Tire Rack, the leading independent tire tester and consumer-direct source for tires, wheels, and performance accessories, on its sale to Discount Tire, the largest independent tire retailer in the U.S. The transaction was announced on December 3, 2021, and closed on December 31, 2021. Stout served as exclusive sell-side financial advisor to Tire Rack in connection with the transaction.
“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,” 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, a company that serves customers through an inviting, easy, and safe experience while also taking care of and valuing their team members.”
“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.”
Following the close of the transaction, Discount Tire CEO Dean Muglia, a 32-year veteran of the business, 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.
Stout Managing Director Steven Rathbone led the transaction and was supported by Michael Brocious, Steven Simone, and Jack Dunsire.
Shearman & Sterling LLP served as legal counsel to Tire Rack. BDT & Company and J.P. Morgan served as financial advisors, and Ballard Spahr served as legal counsel to Discount Tire.
About the Companies
Tire Rack, family-owned and headquartered in South Bend, Indiana, is a leading independent tire tester and consumer-direct source for tires, wheels, and performance accessories. Founded by Peter and Wilma Veldman along with Mike Joines in 1979, Tire Rack began as a single-point retail store in Indianapolis. Since then, Tire Rack has grown to encompass over 2.8 million square feet of space in ten distribution centers across the country, with over 950 team members in its employ. Tire Rack does business as TIRERACK.COM online, TR Wholesale Solutions in the car dealer and wholesale channels, and TIRE RACK MOBILE INSTALLATION in select areas as a mobile installation solution.
Discount Tire, based in Scottsdale, Arizona, is a leading independent retailer of tires and wheels. Discount Tire was founded in 1960 by Bruce Halle and serves customers at 1,100+ stores in 37 states. The company does business under the trade name Discount Tire in most of the U.S. and as America’s Tire in parts of California.