Bain Capital Private Equity has made an investment in Dealer Tire, which manages replacement tire and parts programs for car dealerships. No financial terms were disclosed.
CLEVELAND, OH—October 23rd, 2018—Dealer Tire, LLC, a national leader in replacement tire and parts distribution for automotive dealerships, today 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.
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 developing an innovative position in the tire industry focusing on the OEM channel. 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. Dealer Tire has also made several strategic moves in 2018 to expand its platform. In May, it invested 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.
“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.”
“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.
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.
About Dealer Tire
Dealer Tire LLC is a family business that was founded in 1999 by the owners of the former Mueller Tire & Brake, a Cleveland-based retail chain founded in 1918. Dealer Tire manages replacement tire and parts programs for more than 20 automotive OEMs in the U.S. and China. It serves more than 10,000 automotive dealerships from nearly 40 distribution centers across the U.S. For more information about Dealer Tire, visit www.dealertire.com.
About Bain Capital Private Equity
Bain Capital Private Equity (www.baincapitalprivateequity.com) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity’s global team of approximately 240 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital has 19 offices on four continents. The firm has made primary or add-on investments in more than 760 companies since its inception. In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, managing approximately $105 billion in total and leveraging the firm’s shared platform to capture opportunities in strategic areas of focus.
About Lindsay Goldberg
Lindsay Goldberg is a private investment firm managing over $13 billion of equity capital that focuses on partnering with families, founders and management teams seeking to actively build their businesses. For more information about Lindsay Goldberg, please visit www.lindsaygoldbergllc.com.