Audax Private Equity, known for its strategic investments in middle-market companies, recently announced its investment in Dobbs Tire & Auto Centers, Inc., a tire retailer and automotive service company with a robust presence in the Midwestern United States.
St. Louis, Missouri-based Dobbs has grown since its inception in 1976 to now include more than 650 associates working across 43 stores in Missouri and Illinois. The company offers an array of automotive services and is known for servicing a variety of vehicles, including cars, light trucks, SUVs, hybrids and electric vehicles.
Jason Ellis, managing director at Audax, expressed the company’s interest in the auto services sector, pointing out Dobbs’ operational quality, customer loyalty and strong employee base as key reasons for the investment. “Given our history in auto aftermarket and consumer services, we have been pursuing a thesis in the auto services segment for some time,” Ellis noted.
CEO Dustin Dobbs welcomed the partnership, viewing it as a pivotal moment in the company’s history that was started by his grandfather nearly half a century ago. “How excited he would be to see us join forces with Audax, which shares our vision for the company’s future, and has the resources, knowledge, and operational experience to help us realize our tremendous potential,” said Dobbs.
Highlighting the strategic intent behind the investment, Jay Mitchell, partner at Audax, mentioned that the firm aims to bolster Dobbs’ growth organically and through expansion into new markets. “Dobbs represents a tremendous start on our buy and build strategy, and we’re excited to partner with Dustin and the entire team to capitalize on the opportunity,” Mitchell said.
The investment comes from Audax’s latest flagship fund, Audax Private Equity Fund VII, which closed at $5.25 billion in July.
In the transaction, Dobbs was advised financially by Capstone Partners, while Audax was advised by Stifel. Financing support was provided by Golub Capital and Stifel, and legal counsel was offered to Dobbs by Nelson Mullins and to Audax by Gibson, Dunn & Crutcher and Goulston & Storrs. The financial terms of the transaction were not disclosed.
