Consumer Tires Retail Suppliers Wholesale Distribution

Equity firm buys minority stake in Dealer Tire

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Boston, Mass.-based private equity firm TA Associates has bought a minority stake in Dealer Tire, the country's largest wholesaler of tires to car dealerships. Terms of the deal have not been disclosed.

Headquartered in Cleveland, Ohio, Dealer Tire has established national tire supply programs with Toyota, Nissan, Volkswagen, Kia, Audi, BMW and other car manufacturers. The company manages 20 distribution centers and provides same-day or next-day delivery service nationwide.

"We have closely followed Dealer Tire's rapid growth over the years," says M. Roy Burns, senior vice president at TA Associates.

"Due to the efforts of Dealer Tire, automobile dealers have doubled their market share of the replacement tire market over the last decade," says Michael Berk, TA Associates' managing director.

"Despite the advantage of recurring customer visits, auto dealers have undersold replacement tires historically due to inventory requirements and lack of training. Dealer Tire is changing this distribution channel by equipping dealers with the tools, training and logistical support to improve sales and retention of their existing flow of service customers."

Dealer Tire is run by CEO Scott Mueller, former head of Cleveland-based retail tire store chain Mueller Tire & Brake, which was sold to TBC Corp. nearly 10 years ago.

 

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