Raben Tire acquires western Kentucky dealer
Raben Holdings LLC has acquired the inventory and other non-real estate assets of Shelby’s Wheel and Tire Inc. in Paducah, Ky.
Shelby’s sells and services passenger and light truck tires, primarily Michelin and associated brands, as well as Nexen and Doral tires, to consumers in Paducah and far west portions of Kentucky.
The dealership is a natural extension of Raben’s business and network, according to Eric Glover, president of Raben Tire Co.
“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.”
Shelby’s was founded by Shelby Dunn and the Dunn family in 1985. Joe Goff, an employee, purchased the outlet a year later.
Goff says he is delighted to become part of the Raben Tire family. “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, Ky., 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.
Goff will manage the Paducah store.
The acquisition of Shelby’s Wheel and Tires is the second 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. The first dealer acquired by Raben was Coogle Tire Service of Otterbein, Ind., which sells and services mainly agricultural and commercial tires.
Luis Zaldivar, a managing director of Palladium, says, “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.”
Palladium and Raben Tire declined to disclose terms of the transaction.
Raben Tire offers 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.
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