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Dealer Tire Announces Significant Investment by Bain Capital Private Equity

Bain Capital Private Equity has made a significant investment in Dealer Tire for the company to accelerate growth and expansion.

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Dealer Tire, LLC, a national distributor of replacement tires and parts for automotive dealerships, announced that Bain Capital Private Equity has made a significant investment in the company to accelerate growth and expansion. Financial terms of the private investment were not disclosed and proceeds will be used to purchase the interests of Lindsay Goldberg LLC, the company’s current investment partner since December 2014.

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Based in Cleveland, Ohio, Dealer Tire can trace its roots in the city and the tire industry to 1918. The company has built its business by focusing on the OEM channel in the tire industry. Dealer Tire provides dealers with the tools they need to sell tires, such as training, inventory management solutions, retail pricing support, marketing materials, road hazard coverage, warranty assistance and more.

In May, Dealer Tire made a stretegic move to expand its platform by investing in SimpleTire, LLC, an online marketplace with a virtual inventory model that facilitates web-based tire sales. Previously, it announced an investment in Tyrata, Inc., a tire sensor and data management company. Dealer Tire will continue to operate under the leadership of its current management team, led by CEO Scott Mueller and President Dean Mueller.

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“We’re very appreciative of our partnership with Lindsay Goldberg,” said Scott Mueller, founding partner and CEO of Dealer Tire. “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.”

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“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.”

Bain Capital Private Equity has significant experience in the services, consumer, and industrial sectors, having made investments in a wide range of businesses including ASIMCO, American Trailer World, Autodistribution, BRP, Diversey, European finTyre Distribution, Genpact, MSX International, Sensata Technologies and TI Automotive.

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The transaction, which is expected to close in December 2018, is subject to customary closing conditions, including requisite regulatory approvals. J.P. Morgan and Moelis & Company are serving as financial advisors, Debevoise & Plimpton as legal counsel, and Ernst & Young as accounting advisor to Dealer Tire. Cowen is serving as financial advisor, Kirkland & Ellis as legal counsel, and PwC as accounting advisor to Bain Capital Private Equity. Weil, Gotshal & Manges is serving as legal counsel to Lindsay Goldberg.

 

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