Equity firm buys Dealer Tire stake
BOSTON—Private equity firm TA Associates Inc. of Boston has completed a minority investment in Dealer Tire L.L.C., the Cleveland-based distributor that focuses on supplying tires to auto dealerships nationwide.
Financial details of the investment were not disclosed, but Dick Cahoon, a partner in Dealer Tire, told Tire Business the deal
wasn't a capital investment but rather “a chance to reorganize our ownership team.”
Mr. Cahoon added that Dealer Tire has “no need for liquid capital. Business has never been better.”
He attributed the company's banner year to “a good plan and good execution and good management.” Dealer Tire works exclusively with OE auto makers to implement replacement tire programs for their dealerships. The company operates 20 distribution centers servicing national programs with Audi, BMW, Infiniti, Jaguar, Kia, Land Rover, Lexus, Mercedes-Benz, MINI, Nissan, Saab, Toyota and Volkswagen.
M. Roy Burns, a senior vice president with TA Associates, and Michael Berk, a managing director, will join the Dealer Tire board of directors.
Mr. Cahoon said the Walter Mueller family still holds a controlling interest in the company.
Dealer Tire was founded by the former owners of the longtime Cleveland-based Mueller Tire & Brake retail chain, which was acquired some half-dozen years ago by TBC Corp.'s Tire Kingdom Inc. retail unit.
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