German tire manufacturer Continental has purchased Indiana’s Hoosier Racing Tires according to an announcement made by the company yesterday. Apparently the two organizations had been working as partners on projects for the better part of a decade before this deal was struck. This is a major piece of news in the racing tire world as we know LOTS of drag racing who have Hoosiers bolted to their backs of car ranging from 12-second bracket cars to 5-second pro mods. Along with the drag racing world, they are huge in circle track racing which wold include dirt and asphalt style competition. For those of you about ready to freak out, don’t.
Iconic high performance tire manufacturer Mickey Thompson (a BangShift sponsor) was purchased by Cooper Tire and Rubber in 2003 and it has resulted in a dynamic company that is meeting their needs of its customers on whatever surface that they are competing with under their tires.
Of course you cannot predict the future but with 500 employees and a steadily increasing business, Hoosier was not a company bought because it was about to tip over, it was bought because Continental feels as though it would be a good strategic move for their business. It was about four years ago that Bob Newton, the founder of Hoosier Racing Tires passed away and the company has been successfully operated in his absence.
Joyce Newton who is Bob’s wide has been running the company as President and CEO and she was instrumental in this deal coming together. Here’s the full statement from Hoosier and Continental below –
Continental Acquires Hoosier Racing Tire Corporation
- Strategic acquisition further broadens Continental’s tire portfolio
- Hoosier supplies tires for most racing applications around the world
- 7 year successful partnership supports immediate exploration of opportunities
Fort Mill, SC., October 4, 2016 — The international technology company Continental today announced the acquisition of Lakeville, IN-based Hoosier Racing Tire Corp., a manufacturer of specialty tires for racing applications.
“This acquisition showcases the consequent execution of our long-term growth strategy Vision 2025, characterized by strategic planning and systematic implementation of technological progress. The acquisition of Hoosier Racing Tire is an exciting next addition to our product portfolio and will support our growth strategy, especially in the ultra high performance segment,” said Nikolai Setzer, Executive Board Member for Continental’s tire business.
Dr. Jochen Etzel, CEO of Continental Tire the Americas, LLC (CTA) added, “Hoosier’s management team has built an impressive business. We believe Hoosier Tire is well-positioned to continue its strong growth, and we look forward to supporting that development through our complementary knowledge and extensive footprint. Hoosier’s management team will continue to run the racing tire business. We are committed to the employees, and the communities in which Hoosier operates. We look forward to the future of working together to accelerate growth.”
Hoosier was founded in 1957 and has a legacy of technical product knowledge, quality manufacturing, outstanding service and consistent performance. Hoosier supplies tires for most racing applications throughout the world, with an emphasis on high performance and quality. The company currently employs nearly 500 people.
Joyce Newton, Hoosier’s president and CEO said, “Continental and Hoosier share a similar vision for continued growth and sales excellence. Hoosier has fantastic brand recognition, a high-performing team, established customer relationships and a great lineup of products. This acquisition will provide a stronger and more sustainable organization for Hoosier moving ahead.”
Continental and Hoosier have worked together over the past several years on a variety of technical and motorsports projects. Continental is constantly looking to add talent to its team. The transaction will create significant opportunities for the employees of Hoosier and CTA.
Terms of the transaction are not being disclosed.
Too bad Yokohama didn’t acquire them. They could have been called Hoosiermama.
Hoosier has been building the Continental racing tires for the NASCAR turned IMSA road racing series for several years. I suppose it makes some sense in the end. Maybe Hoosier taught them how to be a decent tire.
Makes me wonder if all the short track dirt tires are now going to be labeled as Continentals.