Dealer Tire said Monday it has entered a deal to buy reconditioning service and vehicle protection product provider Dent Wizard from Gridiron Capital.
The transaction would result in what Dealer Tire called the “leading aftersales dealer services platform in North America.”
“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,” Dealer Tire partner and chief executive Scott Mueller said in a news release.
“This acquisition aligns with our strategy of making it easy and profitable for dealers to sell more tires, parts, services and accessories,” Mueller said.
Dealer Tire, whose majority shareholder is Bain Capital, works with more than 20 automakers in the U.S. and China, managing replacement tire and parts programs. It has nearly 40 distribution centers in the U.S., serving over 8,000 dealers.
The deal to buy Dent Wizard, subject to customary closing conditions, is expected to close this quarter.
Dent Wizard will continue to run independently. It is retaining its existing management team, led by chief executive Mike Black.
“Dealer Tire and Dent Wizard have similar goals, core values and compelling value propositions which make this a powerful partnership,” Black said in the release.
“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,” he said. “We have had an outstanding partnership with Gridiron and look forward to the same with Dealer Tire and Bain Capital.”