Cleveland-based Dealer Tire, a provider of replacement tires to automotive dealerships, has entered into a definitive agreement to acquire Dent Wizard, a move that would create a large North American aftersales dealer services platform.
Headquartered in St. Louis, Dent Wizard is billed as North America’s largest provider of automotive reconditioning services and vehicle protection products. The company has more than 7,000 customers — of which over 5,000 are car dealerships. Its services include paintless dent repair, minor wheel and paint refinishing, interior repair, key replacement, in-transit repair, and hail and catastrophe services.
Dent Wizard would continue to operate independently under the leadership of its existing management team headed by CEO Mike Black.
“The combination of Dent Wizard’s reconditioning capabilities and Dealer Tire’s service lane presence offers greater opportunities to help car dealers increase their fixed operations sales and profits and to increase customer retention,” Scott Mueller, partner and CEO of Dealer Tire, said in a Jan. 6 announcement. “This acquisition aligns with our strategy of making it easy and profitable for dealers to sell more tires, parts, services and accessories.”
Dealer Tire, which is backed by majority shareholder Bain Capital, is acquiring Dent Wizard from Gridiron Capital. The transaction, which is expected to close in the first quarter of 2020, is subject to customary closing conditions, including regulatory approval.
J.P. Morgan Securities was financial adviser to Dealer Tire. Jefferies LLC and Robert W. Baird & Company were financial advisers to Dent Wizard.