CLEVELAND--(BUSINESS WIRE)--Dealer Tire, LLC, a national leader in replacement tire distribution for automotive dealerships, has entered into a definitive agreement to acquire Dent Wizard, the largest national provider of automotive reconditioning services and vehicle protection products. The combination of the two companies will create the leading aftersales dealer services platform in North America. Dealer Tire, backed by majority shareholder Bain Capital, is acquiring Dent Wizard from Gridiron Capital (Gridiron).
Founded in 1983 and headquartered in St. Louis, Missouri, Dent Wizard is North America’s largest provider of automotive reconditioning services and vehicle protection products. The company services the light vehicle needs of over 7,000 customers – including over 5,000 car dealership accounts – in 97 of the top 100 U.S. markets. Their 2,300 highly trained technicians deliver paintless dent repair, minor wheel and paint refinishing, interior repair and key replacement, in-transit repair, hail and catastrophe services, as well as related F&I products.
Dent Wizard will 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,” said Scott Mueller, Partner and CEO of Dealer Tire. “This acquisition aligns with our strategy of making it easy and profitable for dealers to sell more tires, parts, services and accessories.”
“Dealer Tire and Dent Wizard have similar goals, core values and compelling value propositions which make this a powerful partnership,” said Black. “This combination is a great fit because our cultures are very much aligned and we will be thoughtful and deliberate in ensuring that we preserve and harness the best of both organizations as we execute on the many growth opportunities that we see ahead to serve our customers. We have had an outstanding partnership with Gridiron and look forward to the same with Dealer Tire and Bain Capital.”
“We’ve built our business by consistently driving innovation in the tire distribution business and by providing automotive dealers with the tools and services they need to be successful on the service drive,” added Mueller. “As Dealer Tire enters our 102nd year in business, strategic investments like this ensure that we are continuously elevating our position as an innovative partner focused on helping dealers grow.”
The transaction, which is expected to close in Q1 2020, is subject to customary closing conditions, including requisite regulatory approvals. Financial terms of the private transaction were not disclosed. J.P. Morgan Securities LLC acted as financial advisor to Dealer Tire, and Debevoise & Plimpton LLP and Kirkland & Ellis LLP served as legal counsel. Jefferies LLC and Robert W. Baird & Co. acted as financial advisors to Dent Wizard, and Benesch, Friedlander, Coplan & Aronoff LLP served as legal counsel.
About Dealer Tire
Dealer Tire LLC is a family business that was founded in 1999 by the then owners of the former Mueller Tire & Brake, a Cleveland-based retail chain founded in 1918. Dealer Tire manages replacement tire and parts programs for more than 20 automotive OEMs in the U.S. and China. It serves more than 8,000 automotive dealerships from nearly 40 distribution centers across the U.S. For more information about Dealer Tire, visit www.dealertire.com.
About Dent Wizard
Dent Wizard International, established in 1983, is North America’s largest provider of automotive reconditioning services and vehicle protection products. Services include paintless dent removal, minor body repair including bumpers, wheel restoration, interior repair, appraisal and catastrophe support, key origination and duplication, plus finance & insurance products. Dent Wizard serves many of the automotive industry’s leading companies through a diverse mix of customer channels: dealers, auctions, rental, finance & insurance and catastrophe/OEM, which includes auto body shops and insurance companies. Dent Wizard is transforming the automotive reconditioning and vehicle protection markets through its full-service solutions and unmatched scale and expertise. For more information visit www.dentwizard.com and www.evolutionvehicleprotection.com.