Private Equity Firm Acquires Grismer Tire
Dallas, Texas-based private equity firm CenterOak Partners LLC has acquired Grismer Tire Co., which has 28 stores in central and southwestern Ohio.
In a statement issued on April 2, CenterOak Partners LLC described the transaction as "a majority recapitalization" of Grismer Tire, which is based in Dayton, Ohio.
Grismer Tire's majority owner was John Marshall, whose father, Charles "Charlie" Marshall Sr., bought the dealership from its founder, Adam Grismer, in 1932.
Grismer Tire has locations in the Dayton, Cincinatti and Columbus, Ohio, markets and "has built a strong regional brand based on high-quality service, trusted customer relationships and competitive pricing," according to CenterOak Partners officials.
"The automotive service sector continues to benefit from strong tailwinds, including an aging vehicle fleet and increasing repair and maintenance complexity,” says Jason Sutherland, managing partner of CenterOak Partners. “Grismer aligns with our focus on investing in essential, non-discretionary service businesses supported by recurring customer demand. This investment represents our fourth automotive service platform and we look forward to applying our experience to support Grismer’s continued growth.”
"Grismer is a highly regarded operator with a long-standing reputation for quality service and a loyal customer base,” says Eric Holter, managing director of CenterOak Partners. “Grismer has built a strong regional brand, growing through new unit openings and addressing a broader range of customer needs. We see a compelling opportunity to accelerate the company’s growth rate in existing and new markets.”
"We are proud of what Grismer has accomplished as a second-generation, family-owned business over its more than 90-year history and believe CenterOak is the right partner to build on our legacy,” says Marshall, who was MTD's Tire Dealer of the Year in 2003. “Their sector experience, along with the integrity and thoughtfulness they demonstrated throughout our discussions, gives us great confidence in their ability to guide the company through its next stage and deliver exceptional service to customers.”
CenterOak Partners says it brings "significant experience in the automotive service sector, having previously invested in CollisionRight, FullSpeed Automotive and TruRoad. CenterOak Operating Partner Bob Rosenfield, former CEO of TruRoad, will be joining the Grismer board of directors."
The private equity firm says it manages "$2.5 billion of equity capital commitments, with a focus on making control-oriented investments in middle market companies."