Cleveland-based Dealer Tire has made a “significant investment” in online tire retailer SimpleTire. Terms of the deal were not disclosed.
Dealer Tire manages replacement tires and parts programs for more than 20 automotive OEMs in the United States and China. It serves over 10,000 automotive dealerships from 39 distribution centers across the United States.
SimpleTire operates an e-commerce that links independent tire distributors across the country. Its network includes more than 3,000 supply points.
Scott Mueller, partner and CEO of Dealer Tire, said of the deal: “The business of selling tires continues to evolve.”
“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 selling tires,” Mueller explained. “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.”
Mueller pointed out that Dealer Tire has developed core expertise in logistics, technology, merchandising, marketing and more. “We will leverage our expertise and SimpleTire’s capabilities to create new opportunities for both companies,” he said
Brothers Andy and Josh Chalofsky developed the concept for SimpleTire with business partner Kenny Pratt. All three founders will continue to lead the company. SimpleTire CEO Andy Chalofsky said: “We’re confident this investment will help both companies, our customers and our suppliers continue to grow and evolve.”