Palladium Equity Partners has made a significant investment, in partnership with the Raben family, in Raben Holdings, an independent tire dealer and automotive services provider. The transaction is the fourth platform investment by Palladium in 2014.
Raben Tires supplies a range of tires – including passenger, motorcycle, and truck tires – to retail, commercial, and wholesale customers. The company was founded in 1952 by Butch Raben and has grown from a single location to 25 stores, two wholesale distribution centers, and three retreading facilities located in Indiana, Kentucky, Illinois, Missouri, and Arkansas. Raben Tire is headquartered in Evansville, IN (www.rabentire.com).
“We are excited to partner with Palladium, a firm with strong experience in working with and growing family-owned companies,” said Tom Raben, President of Raben Tire. “Palladium shares our vision of expanding the Raben Tire footprint within our existing markets and into adjacent markets across the US. We are ready to work together to continue growing the company that my father, brothers, and I have built.”
“Raben Tire has established a strong brand reputation in the Midwest by offering excellent service to its loyal customer following and strong relationships with its suppliers,” said Luis Zaldivar, a Managing Director of Palladium. “My partners and I look forward to supporting the growth of Raben Tire through initiatives such as increasing the number of services offered, opening new locations, and pursuing strategic acquisitions. We seek to accelerate the consolidation of a fragmented industry by providing family-owned businesses with new liquidity and transition opportunities.”
Palladium targets investments in business services companies as well as in financial services, consumer/retail, food/restaurants, healthcare, industrial, and media businesses. Palladium has a focus on companies that operate in the US Hispanic market. In April 2014, Palladium announced the final closing of Palladium Equity Partners IV, LP with $1.1 billion of capital, significantly above the firm’s target. Since its founding in 1997, Palladium has invested over $1 billion of capital in more than 20 platform investments and over 50 add-on acquisitions. The firm is based in New York (www.palladiumequity.com).
2014 PEPD • Private Equity’s Leading News Magazine • 12-10-14