Bain Capital Private Equity has made an undisclosed “significant investment” in Cleveland-based Dealer Tire, which manages replacement tire and parts programs for more than 20 automotive OEMs in the United States and China. The investment is earmarked for accelerating Dealer Tire’s growth and expansion.
Financial terms of the private investment were not disclosed. The transaction — which is expected to close in December — is subject to customary closing conditions, including regulatory approval.
Proceeds from Bain’s investment will be used to purchase the interests of Lindsay Goldberg LLC, which has been Dealer Tire’s investment partner since 2014. Dealer Tire will continue to operate under the leadership of its current management team, led by CEO Scott Mueller and President Dean Mueller.
Scott Mueller — also a founding partner of Dealer Tire — said Lindsay Goldberg’s support has allowed the company to expand its business and invest in opportunities that position Dealer Tire for continued growth. “We’re excited about our new partnership with Bain Capital because their reputation, track record, and investment philosophy align well with Dealer Tire’s goals and values,” Mueller stated.
Bain has experience in the services, consumer and industrial sectors, having made investments in such companies as ASIMCO, Autodistribution, European finTyre Distribution, Sensata Technologies and TI Automotive.
Joseph Robbins, a managing director at Bain, said Dealer Tire has a unique value proposition that employs innovation and technology to help customers and partners seize opportunities in tire replacement sales and service.
“We are excited to partner with the Mueller family and the talented management team they have assembled as they continue to expand the company’s platform to support dealers, OEMs, tire manufacturers and web-based customers in accelerating their growth in this vibrant industry sector,” Robbins said in an announcement dated Oct. 23.
Dealer Tire provides dealers with tools to sell tires, such as training, inventory management, retail pricing support, marketing material, road hazard coverage, warranty assistance and more. It serves more than 10,000 automotive dealerships from nearly 40 distribution centers across the United States.
Bain’s investment comes as Dealer Tire is expanding its platform.
In May, Dealer Tire invested in SimpleTire LLC, an online marketplace with a virtual inventory model that facilitates web-based tire sales. Earlier this year, it also made an investment in Tyrata Inc., a tire sensor and data management company.