Dealer Tire Announces Significant Investment in SimpleTire
May 9, 2018
CLEVELAND, OH â€” May 9, 2018 â€” Dealer Tire, LLC, a national leader in replacement tire distribution for automotive dealerships, is making a significant investment in SimpleTire, a Philadelphia-based online tire retailer that has developed an innovative e-commerce platform and network of independent tire distributors. Terms of Dealer Tireâ€™s investment were not disclosed.
â€œThe business of selling tires continues to evolve,â€ said Scott Mueller, Partner and CEO of Dealer Tire. â€œWeâ€™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 selling tires. While our core business remains focused on supporting the dealer channel and our OEM customers, our investment in SimpleTire is part of our effort to continue bringing innovation and technology to the tire industry.â€
In 2012, brothers Andy and Josh Chalofsky developed the concept for SimpleTire while working in their familyâ€™s brick and mortar tire store. With business partner Kenny Pratt, they successfully converted a traditional tire sales business model into a technology-driven model, linking independent tire distributors across the country into one seamless e-commerce network. All three founders will continue to lead the company.
â€œDealer Tire has built its business by developing an innovative position in the tire industry focusing on the OEM dealer channel,â€ said SimpleTire CEO Andy Chalofsky. â€œLikewise, weâ€™ve built our business by driving innovation in the growing e-commerce channel. Weâ€™re confident this investment will help both companies, our customers and our suppliers continue to grow and evolve.â€
â€œWeâ€™ve developed strong core expertise in logistics, technology, merchandising, marketing and more,â€ said Mueller. â€œWe will leverage our expertise and SimpleTireâ€™s capabilities to create new opportunities for both companies. And as we move into our second century in the tire business, investments in companies like SimpleTire and Tyrata ensure that we remain an innovative leader in the tire industryâ€™s ever-changing landscape.â€
Debevoise & Plimpton LLP served as legal counsel to Dealer Tire and Perkins Coie LLP served as legal counsel to SimpleTire in connection with the transaction.