ONCAP has agreed to sell its equity interest in Mavis Discount Tire to Express Oil Change & Tire Engineers (Express), a Golden Gate Capital portfolio company. The combined company creates one of the largest independent automotive service platforms in the US. Golden Gate Capital acquired a majority equity interest in Express in June 2017 from Carousel Capital.
Mavis Discount Tire, a portfolio company of ONCAP since October 2014, is one of the largest independent tire and service providers in the US with more than 430 service centers across New York, New Jersey, Pennsylvania, Connecticut, Massachusetts, Georgia and Florida. In addition to its core offering of tires from over 20 major brands, Mavis also provides repair and maintenance services including brakes, alignments, suspension, shocks, and exhaust. Mavis, which was founded in 1972 by Marion and Victor Sorbaro, is headquartered in Millwood, NY (www.mavistire.com).
Express Oil Change & Tire Engineers is one of the largest independent automotive service platforms in the US. The company provides quick oil changes, automotive maintenance and repair, and tire sales and services and has approximately 400 company-owned and franchise locations in 19 states. Express was founded in 1979 and is headquartered in Birmingham, AL (www.expressoil.com).
The combined company will operate more than 830 locations in 24 states across the East Coast, South and Midwest. The merged company will be led by Mavis’ current Co-Chief Executive Officers, David and Stephen Sorbaro, and both of them will be significant shareholders. Express’ Chief Executive Officer, Ricky Brooks, will become Executive Chairman.
“For years we have observed both Mavis’ and Express’ tireless dedication to their customers and operational excellence and we’re elated to have the opportunity to partner with the Sorbaros and Ricky,” said Josh Cohen, a Managing Director at Golden Gate Capital. “Uniting these strong, recognized brands will combine best practices and result in an acceleration of their current industry-leading growth.” Golden Gate will continue to back the company as it seeks to acquire additional automotive service providers in the combined company’s core and contiguous markets.
“We are thrilled to partner with Express and Golden Gate Capital to create a leading company in the auto service industry in terms of service center footprint, financial strength and service quality,” said David Sorbaro, Co-Chief Executive Officer of Mavis Discount Tire. “Express is the ideal partner as we continue to expand our footprint nationally. We’re grateful for ONCAP’s support throughout its ownership, and Stephen and I look forward to continuing to provide customers at Mavis and Express with the very best auto care in the industry.”
ONCAP is the mid-market private equity platform of Onex Corporation which makes private equity investments through the Onex Partners and the ONCAP families of funds. Onex has more than $25 billion of assets under management and is based in Toronto with additional offices in New York, New Jersey and London (www.onex.com).
“During our ownership David and Stephen did a fantastic job expanding on their world-class platform,” said Evan Hershberg, a Managing Director at ONCAP. “We’re proud of what we accomplished together and we wish Mavis, Express and Golden Gate Capital continued success.”
Golden Gate Capital targets companies across a range of industries and transaction types, including going-privates, corporate divestitures, recapitalizations, and public equity investments. The firm has approximately $15 billion of capital under management and is based in San Francisco (www.goldengatecap.com).
Jefferies is the financial advisor to Mavis and is leading the financing group which includes Antares Capital, KKR Capital Markets, Angel Island Capital and Cowen.
This transaction is expected to close before June 30, 2018.
© 2018 Private Equity Professional | February 26, 2018
