Greenbriar strategy: Build unmatched pool of talent

TUCSON, Ariz. — Two years ago, GB Auto Service was a non-entity in the U.S. tire scene.

Today it's the 10th largest retail tire and auto service dealership in the U.S., with 116 outlets spread among four states.

GB Auto Service is part of Greenbriar Equity Group L.P., a Rye, N.Y.-based private equity firm with holdings in the transportation and related sectors.

While the company's first acquisition in the automotive aftermarket — Brake Max Car Care Centers of Arizona — was in 2017, the group began evaluating the sector for investment possibilities in 2015 when it hired David Dyckman, a former American Tire Distributors Inc. (ATD) executive, who was tasked with evaluating potential investment opportunities.

• This story appears in the Oct. 28 print edition of Tire Business.

Mr. Dyckman spent nine years at ATD, starting as chief financial officer in 2006 and advancing to executive vice president and COO by 2012, before being recruited by Greenbriar, which was an ATD investor prior to 2010.

Since that first acquisition, Greenbriar has accumulated six more assets in the sector — California's Ramona Tire Inc. (17 stores); Nevada-based Tire Works Total Car Care (15 stores); Evans Tire & Service Centers Inc. of San Diego (17 stores); Lamb's Tire & Automotive Centers of Austin, Texas (18); Driver's Edge Complete Tire & Automotive of Dallas/Forth Worth (11); and Wilhelm Automotive & Tire of greater Phoenix (11).

Greenbriar has not disclosed its investment in any of the purchases, but in general the company targets companies with enterprise values ranging from $100 million to $1 billion or more and invests $75 million to $150 million of equity capital in each transaction.

As for the firm's vision moving forward, Frank Kneller, CEO of GB Auto Service since late last year, said Greenbriar believes the DIFM (do it for me) segment of the aftermarket is a large and growing market with "favorable secular trends and cycle-resistant characteristics."

Bearing this in mind, Mr. Kneller said Greenbriar feels that great managers who are supported by the benefits of a larger platform can drive "attractive and repeatable store results." Thus Greenbriar's strategy is to assemble a "pool of talent that we feel is unmatched."

To this end, he added, Greenbriar management believes the company can offer an "attractive and differentiated exit alternative" for owners looking to preserve their brand/legacy while ensuring their employees will become part of a "larger but supportive and nimble team organization."

A former vice president of Sears Automotive (2010-14), Mr. Kneller brings 30-plus years of executive experience to GB Automotive, including 25 at Service Master and several in the solar-power generation industry.

Greenbriar's activity in the sector has focused on established businesses with clear brand identities in the Southwest/West Coast, a pattern that reflects the firm's belief in the growth prospects for large markets with attractive demographics.

Since establishing its footprint in Arizona, Nevada, Southern California and Texas, GB Auto has focused on "in-market or adjacent acquisitions" and greenfields to drive regional density, Mr. Kneller said.

Greenbriar has retained its acquired dealerships' brand identities in their respective markets — and is keeping each brand's website active — but it recognizes the "importance of having a cohesive platform behind the scenes, and to that end we have tightly integrated our acquired businesses across a variety of dimensions including operational best-practices, product and service screens, POS and reporting systems, and employee compensation and benefits structures." Mr. Kneller said.

GB Auto also tries to retain the staff — including management — at each dealership it buys in order to "provide a consistent experience for the customer" while implementing improved strategies for growth and efficiency, he said, adding, "One of the major keys to our success is our people."

Moving forward, GB Auto has crafted an "aggressive" growth strategy that involves both acquisitions and the development of greenfield stores where it makes sense.