Equity firm TA Associates has acquired a minority share in Dealer Tire LLC.
Dealer Tire, based in Cleveland, Ohio, was founded by former independent tire dealer Scott Mueller, who sold his successful retail tire business to TBC Corp. in 1999. Dealer Tire provides replacement OE tires to car dealerships, and has some 20 distribution centers nationwide serving and estimated 4,000 car dealers.
Financial details of the investment deal were not disclosed.
“We have closely followed Dealer Tire’s rapid growth over the years and have admired its win-win-win business model,” said TA Associates vice president Roy Burns. “Automobile dealers have long faced customer retention challenges in their service departments, and replacement tires are a major defection point away from dealers. Dealer Tire provides dealers with the tools necessary to offer their customers better service and to do so profitably.”