N.Y. equity firm buys stake in Raben Tire

NEW YORK (Dec. 10, 2014) — Palladium Equity Partners L.L.C. has acquired an undisclosed ownership stake in Raben Holdings L.L.C., the Evansville, Ind.-based dealership with retail, commercial, retreading and wholesale operations throughout a five -state area.

“We are excited to partner with Palladium, a firm with strong experience in working with and growing family-owned companies," said Tom Raben, president of Raben Tire.

“Palladium shares our vision of expanding the Raben Tire footprint within our existing markets and into adjacent markets across the U.S. We are ready to work together to continue growing the company that my father, brothers and I have built.”

Terms of the investment, described by Palladium as “significant,” were not disclosed.

“Raben Tire has established a strong brand reputation in the Midwest by offering excellent service to its loyal customer following and strong relationships with its suppliers,” said Luis Zaldivar, a managing director of Palladium.

“My partners and I look forward to supporting the growth of Raben Tire through initiatives such as increasing the number of services offered, opening new locations and pursuing strategic acquisitions. We seek to accelerate the consolidation of a fragmented industry by providing family-owned businesses with new liquidity and transition opportunities.”

Founded in 1952 by Butch Raben, Raben Tire has grown from a single location to 25 stores, two wholesale distribution centers and three retreading facilities across Indiana, Kentucky, Illinois, Missouri, and Arkansas.

Its activities rank Raben Tire among the 50 largest retail and top 20 commercial dealerships in the U.S., as well as among the 35 largest retreaders.

Palladium describes itself as a private investment firm with more than $2.5 billion in assets under management. Palladium seeks to acquire and grow companies in partnership with their founders.

It has no other automotive-related holdings.

For the deal, Raben Tire was advised by Duff & Phelps Securities L.L.C.