Driven Brands was acquired by Roark in April 2015 from Harvest Partners which in turn had acquired the company in December 2011. Driven Brands is a one of the leading franchisors in the automotive aftermarket services industry. Driven’s brands include MAACO, Meineke Car Care Centers, 1-800 Radiator, Merlin 200,000 Mile Shops, Pro Oil Change, Econo Lube & Tune, AutoQual, Aero-Colours and Drive N Style. Adding CARSTAR to Driven Brands results in annual system revenues of approximately $1 billion generated through 2,000 locations in 48 states and 2 countries. Driven Brands is headquartered in Charlotte (www.drivenbrands.com).
CARSTAR is one of the largest multi-shop network of independently owned collision repair facilities in the US. After a record sales year in 2014, CARSTAR finished the first half of 2015 with system-wide sales of $386 million, which puts it on track to outpace its performance in 2014. In 2015, CARSTAR stores in the US have generated year-to-date same store sales increases of 8.3 percent, outpacing the overall collision repair industry average by more than four percent. CARSTAR had a record $712 million of revenue in 2014, up from $641 million in 2013, and $603 million in 2012. CARSTAR and its franchise network operate approximately 240 locations in 30 states. CARSTAR was founded in 1989 and is headquartered in Overland Park, KS (www.carstar.com).
CARSTAR represents the 11th acquisition for Driven Brands since 2013, expanding the brands’ footprint to more than 2,000 franchise locations in the US. Adding CARSTAR to the Driven Brands portfolio is part of the company’s continuing strategy to grow through acquisition.
“At Driven Brands, we are committed to expanding our footprint through the acquisitions of complementary brands that can help elevate our presence in the communities we serve,” said Jonathan Fitzpatrick, president and chief executive officer of Driven Brands. “CARSTAR — an iconic brand that is well-recognized and respected by leading insurance companies — brings us additional expertise in the collision repair business. We are excited about the strength this addition brings to the Driven Brands family creating an unrivaled North American powerhouse in automotive franchising.”
As part of the CARSTAR acquisition, Driven Brands has created a new division called Paint & Collision, which is led by the current Maaco Franchising president, Jose Costa. The new division includes Maaco, CARSTAR, and Drive N Style.
Roark Capital Group invests in consumer and business services companies, with a focus on the franchise, food and restaurant, specialty retail, environmental services, waste management, and marketing services sectors. In December 2014, Roark held a final close of Roark Capital Partners IV LP at its hard cap of $2.5 billion. Since founding in 2001, Roark has raised over $6 billion of equity capital commitments. The firm, headquartered in Atlanta, takes its name from Howard Roark, the protagonist in Ayn Rand’s “The Fountainhead” (www.roarkcapital.com).
Champlain Capital Partners, the seller of CARSTAR, invests in middle-market companies with revenues of $20 million to $100 million and EBITDAs of at least $3 million. Since 1992, the partners of Champlain have invested over $850 million in more than 50 companies. The firm has offices in San Francisco and Boston (www.champlaincapital.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 10-23-15