Palladium Equity Partners has made a “significant” investment in Raben Tire. No financial terms were disclosed for the deal, which was made in partnership with the Raben family. Duff & Phelps Securities advised Raben Tire on the transaction. Raben Tire is a Midwest-based tire dealer and automotive services provider.
New York, NY and Evansville, IN, December 10, 2014 — Palladium Equity Partners, LLC (along with its affiliates, “Palladium”), a private investment firm with over $2.5 billion in assets under management, today announced that it has made a significant investment, in partnership with the Raben family, in Raben Holdings, LLC (“Raben Tire” or the “Company”), an independent tire dealer and automotive services provider in the Midwest. The transaction is the fourth platform investment by Palladium in 2014.
Founded in 1952 by Butch Raben, Raben Tire has grown from a single location to 25 stores, two wholesale distribution centers, and three retreading facilities across Indiana, Kentucky, Illinois, Missouri, and Arkansas. The Company supplies a diverse range of tires, including passenger, motorcycle, and truck tires, to retail, commercial, and wholesale customers.
“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 U.S. 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.”
Terms of the investment were not disclosed. Raben Tire was advised by Duff & Phelps Securities, LLC.
About Raben Tire
Raben Tire is an independent tire dealer offering new and retreaded tires as well as automotive services to retail, commercial, and wholesale customers. The Company operates 25 stores, two wholesale distribution centers, and three retreading facilities across five midwestern states. Raben Tire carries a diverse product portfolio, including passenger, truck, farm, and motorcycle tires. For additional information, please visit www.rabentire.com or call (812) 465-5565.
About Palladium Equity Partners, LLC
Palladium is a middle market private equity firm with over $2.5 billion in assets under management. Palladium seeks to acquire and grow companies in partnership with founders and experienced management teams, and focuses primarily on buyout equity investments in the range of $50 million to $150 million. 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 principals of the firm have significant experience in financial services, business services, food, healthcare, industrial and media businesses, with a special focus on transitioning founder-owned businesses and investing in companies it believes will benefit from the growth in the U.S. Hispanic population. In April 2014, Palladium announced the final closing of Palladium Equity Partners IV, L.P. at $1.14 billion, significantly exceeding its target. Palladium is based in New York City. For more information, visit www.palladiumequity.com.