wholesale tires

Bain Capital Private Equity has acquired Dealer Tire, a provider of replacement tires to automotive dealerships, from Lindsay Goldberg which acquired the company in December 2014.

Dealer Tire is the market leader in the distribution of tires to US automotive dealerships, serving multiple automotive manufacturers representing several brands (including Toyota, Lexus, Mercedes Benz, BMW, Audi and Chrysler) at approximately 10,000 dealership locations. The company also provides sales training, inventory management services, retail pricing support, marketing materials, road hazard coverage, and warranty assistance.

Dealer Tire is a family business, led by CEO Scott Mueller and President Dean Mueller, that was founded in 1999 by the owners of the former Mueller Tire & Brake, a Cleveland-based retail chain founded in 1918 (www.dealertire.com).

In May 2018, Dealer Tire made a “significant” investment in SimpleTire (www.SimpleTire.com), a Philadelphia-based online tire retailer with a network of more than 10,000 independent tire dealers and over 3,000 independent suppliers. In February 2018 the company also made an investment in Tyrata (www.tyrata.com), a Durham, NC start-up company that uses sensor technology to monitor tire tread wear in real time, warning drivers and fleet management operators when tire rubber has grown thin.

“We’re very appreciative of our partnership with Lindsay Goldberg,” said Scott Mueller. “Their support has enabled us to expand our business and invest in opportunities that position us for continued growth. We’re excited about our new partnership with Bain Capital because their reputation, track record and investment philosophy align well with Dealer Tire’s goals and values. As we move into our second century in the tire business, we believe our new partnership with Bain Capital will benefit all stakeholders and keep Dealer Tire well positioned to remain an innovative industry leader.”

Bain Capital Private Equity was founded in 1984 and invests in the consumer and retail; financial and business services; healthcare; industrials; and technology, media and telecommunications sectors. The firm has a team of approximately 240 investment professionals with offices in Boston, Chicago, New York, Palo Alto, San Francisco, Dublin, London, Munich, Melbourne, Mumbai, Hong Kong, Shanghai, Sydney and Tokyo (www.baincapitalprivateequity.com).

“Dealer Tire has a unique value proposition that employs innovation and technology solutions to help customers and partners seize the significant opportunities in tire replacement sales and service,” said Joseph Robbins, a Managing Director at Bain Capital Private Equity. “We are excited to partner with the Mueller family and the talented management team they have assembled as they continue to expand the company’s platform to support dealers, OEMs, tire manufacturers and web-based customers in accelerating their growth in this vibrant industry sector.”

Lindsay Goldberg, the seller of Dealer Tire, manages $13 billion of equity capital and is focused on partnering with family-owned and entrepreneur‐led businesses that are actively building their businesses. The firm is based in New York (www.lindsaygoldbergllc.com).

J.P. Morgan and Moelis & Company are serving as financial advisors to Dealer Tire, and Cowen is serving as financial advisor to Bain Capital Private Equity.

This transaction is expected to close in December 2018.

© 2018 Private Equity Professional | October 24, 2018

Dealer Tire, a value-added distributor of replacement tires and parts for automotive OEMs and their dealers, has secured a significant financial investment from Lindsay Goldberg.  A portion of the investment proceeds will be used to purchase the interests of TA Associates, the company’s current investment partner, which invested in Dealer Tire in 2009. The transaction is expected to close in December 2014.

Dealer Tire is a value-added distributor that equips and assists nearly 12,000 automobile dealers throughout the US and Canada in the sale of replacement tires and other automotive parts to end consumers.  As part of its service offerings, the company trains and educates service personnel at the dealerships on how to market and sell replacement tires to consumers, and provides dealers with the tools to manage their tire and light maintenance programs effectively. Through its 42 distribution centers, Dealer Tire manages replacement tire and parts programs for 23 automotive OEMs in the US and 8 in Canada.  The company was founded in 1999 and is headquartered in Cleveland (www.dealertire.com).

Lindsay Goldberg manages $10 billion of equity capital and is focused on partnering with family owned and entrepreneur‐led businesses seeking a partner to help actively build their businesses. The firm is based in New York (www.lindsaygoldbergllc.com).

“We are very pleased to make this significant investment in Dealer Tire,” said Michael Dees, Partner at Lindsay Goldberg. “Franchised auto dealers have become increasingly focused on customer retention within their service departments and replacement tires and light maintenance parts are a major defection point away from dealers. Dealer Tire provides dealers with the tools necessary to offer their customers better service in a profitable manner.”

“We thank TA Associates for their support over the past five years and welcome our new partners at Lindsay Goldberg,” said Scott Mueller, CEO of Dealer Tire and Dean Mueller, President of Dealer Tire. “Our company prides itself on our innovative approach and accomplishment-driven culture. Lindsay Goldberg’s successful track record, prudent financial philosophy and long-term investment approach are uniquely aligned with Dealer Tire’s goals and aspirations. We are excited to join in this partnership, one that we are confident will benefit all of our stakeholders.”

2014 PEPD • Private Equity’s Leading News Magazine • 11-25-14