Dealer Tire LLC announced it has a new investment partner, Lindsay Goldberg LLC, and will purchase the interests of its current partner, TA Associates.
The company says it has secured a significant financial investment from Lindsay Goldberg, a New York-based private equity firm that specializes in maintaining long-term investments in family-owned businesses. Dealer Tire says a portion of the investment proceeds will be used to purchase the interests of TA Associates, the company’s current investment partner, which invested in Dealer Tire in 2009.
Financial details of the investment were not disclosed. The arrangement between Dealer Tire and Lindsay Goldberg is expected to close in December 2014.
The company issued a joint statement from Scott Mueller, CEO, and Dean Mueller, president, who thanked TA Associates for its support and welcomed its new partner. “Lindsay Goldberg’s successful track record, prudent financial philosophy and long-term investment approach are uniquely aligned with Dealer Tire’s goals and aspirations. We are excited to join in this partnership, one that we are confident will benefit all of our stakeholders.”
Lindsay Goldberg is very pleased to make a significant investment in Dealer Tire, according to Michael Dees, a firm partner.
“Franchised auto dealers have become increasingly focused on customer retention within their service departments and replacement tires and light maintenance parts are a major defection point away from dealers. Dealer Tire provides dealers with the tools necessary to offer their customers better service in a profitable manner.”
Headquartered in Cleveland, Ohio, Dealer Tire is a national distributor that provides program management, logistics and IT services to assist automobile manufacturers and their franchised dealers in selling replacement tires and parts to service customers.
Dealer Tire says it manages replacement tire and parts programs for 23 automotive OEMs in the US and eight in Canada and serves more than 10,000 dealers through 42 distribution centers.
In addition to supplying tires and business support services to car dealerships, Dealer Tire operates RightTurn.com, an online tire-buying website for consumers.
For more information on Dealer Tire, visit www.dealertire.com.