Raben Tire, which is backed by Palladium Equity Partners, has bought the inventory and other non-real estate assets of Shelby’s Wheel and Tires. No financial terms were disclosed. Based in Paducah, Kentucky, Shelby’s is a provider of consumer and light truck tires.
Evansville, Indiana, August 12, 2015 – Raben Holdings, LLC (“Raben Tire”) announced today that it has acquired the inventory and other non-real estate assets of Shelby’s Wheel and Tires in Paducah, Kentucky. Shelby’s is a leader in the sale of consumer and light truck tires to its local retail consumer market, selling primarily Michelin and associated brands, as well as Nexen and Doral tires.
“Shelby’s has serviced Paducah and the far west portions of Kentucky since 1985 and is a natural extension of Raben’s business and network,” said Eric Glover, president of Raben Tire Company. “This acquisition is adjacent to our existing presence in Western Kentucky, Southern Illinois and Southeastern, Missouri and gives us a foothold along the Nashville to St. Louis interstate corridor. We look forward to building on Shelby’s successful 30-year history and continuing the growth of Raben.”
“We are delighted to become part of the Raben Tire family,” said Joe Goff, owner of Shelby’s. “We have great respect for the Raben team, and its brand is already well-known in our market. Most importantly, I believe that our customers will continue to receive the same great service and outstanding value that they have come to depend on from Shelby’s over the past decades.”
Raben currently operates five stores in Western Kentucky and another four stores within 50 miles in Southern Illinois and Southeastern Missouri. With Paducah, Kentucky approximately equidistant between Nashville and St. Louis, the acquisition of Shelby’s adds a highly attractive market along the I-24, I-57, and I-64 interstate corridor. In addition, Raben’s existing television advertising program already reaches the Paducah market.
Raben is pleased that Mr. Goff will continue to serve as the Manager of the Paducah store.
The acquisition of Shelby’s Wheel and Tires is the second undertaken by Raben Tire since a fund managed by Palladium Equity Partners, LLC (together with its affiliates, “Palladium”) made a significant investment in Raben Tire at the end of 2014.
Luis Zaldivar, a Managing Director of Palladium, commented, “With this acquisition, Raben continues its focus on growing its business through attractive consolidation opportunities in a highly fragmented industry. We are pleased to support this second acquisition by Raben as well as its continued execution of its broader growth strategy.”
About Raben Tire Co., LLC
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 27 stores, two wholesale distribution centers, and three retreading facilities across five Midwestern states. Raben Tire carries a diverse product portfolio, including passenger, truck, farm, off road, 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 $2.0 billion in assets under management. The firm seeks to acquire and grow companies in partnership with founders and experienced management teams by providing capital, strategic guidance and operational oversight. Since its founding in 1997, Palladium has invested over $1.0 billion of capital in more than 20 platform investments and over 50 add-on acquisitions. The firm focuses primarily on buyout equity investments in the range of $50 million to $150 million. The principals of the firm have significant experience in financial services, business services, food, healthcare, industrial and media businesses, with a special focus on companies they believe will benefit from the growth in the U.S. Hispanic population. Palladium is based in New York City. For more information, visit www.palladiumequity.com.