Continental purchases tire maker

FORT MILL, S.C.—Continental the Americas L.L.C. is looking to broaden its tire portfolio and expand its capabilities by purchasing Hoosier Racing Tire Corp.

Its acquisition of the longtime motorsports tire manufacturer Oct. 3 allows Continental to enter a business segment in which it was not previously participating, according to Jocjen Etzel, CEO of Continental Tire the Americas.

Terms of the transaction were not disclosed.

“Continental and Hoosier share a similar vision for continued growth and sales excellence,” said Joyce Newton, Hoosier's president and CEO and co-founder of the business. “Hoosier has fantastic brand recognition, a high performing team, established customer relationships and a great lineup of products.”

She said becoming part of Continental will provide the company with a stronger and more sustainable organization for Hoosier in the future.

Newton and her husband Robert founded the Lakeville, Ind.-based business in 1957. Robert Newton died in 2012.

Hoosier “showcases the consequent execution of our long term growth strategy, Vision 2025, characterized by strategic planning and systematic implementation of technological progress,” said Nikolai Setzer, executive board member for Continental's tire business. It especially benefits Continental in the ultra high performance tire segment, he added.

It gives Continental “excellent technical expertise in the area of motorsports tires,” Etzel said. “We expect to continue cross learning (from one another)—their expertise in motorsports and our expertise designing tires for ultra high performance vehicles (for) OE applications like AMG, BMW-M—where both organizations could benefit from each other.”

He noted the business will continue to have a global scope but operate under Fort Mill-headquartered Continental the Americas. Hoosier's work force of about 500 will remain with Continental, Etzel said, as will its production plant in Plymouth, Ind., and distribution centers in the state.

He said the acquired company'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. We are committed to the employees and the communities in which Hoosier operates.”

Hoosier has an opportunity to build its base by exploring expansion into other global markets and leveraging Continental's footprint, Etzel said.

Continental and Hoosier have collaborated over the last several years on several motorsports projects and technical papers, he noted.

Hoosier has been producing race tires for Continental since 2009 under an alliance between the two firms. That pact included the production of motorsports and high-performance tires.

Their alliance coincided with Continental's selection as the exclusive race tire supplier for Grand-Am Road Racing's Sports Car Challenge series—now called the IMSA Continental Tire Sports Car Challenge.

The deal expanded a year later to include Grand-Am Racing's top prototype and GT racing classes, then known as the Rolex Series, and now operating as the IMSA WeatherTech Championship.

More recently, Continental garnered the tire supply contract with its General brand for the Automobile Racing Club of America's ARCA Racing Series presented by Menards.

Hoosier has continued to make tires for Continental for all of those series.

Tire Business contributed to this report.