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Soundcore Acquires Alloy Wheel Repair Specialists

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alloy nf1Soundcore Capital Partners has completed the acquisition of Alloy Wheel Repair Specialists, a full-service alloy wheel repair and replacement company. This marks the first platform investment for Soundcore since its launch in April, 2015.

alloy nf33Alloy Wheel Repair Specialists (Alloy) provides on-site repair of cosmetic damage to alloy wheel cores, off-site remanufacturing of structurally damaged wheels, and OEM replacement parts through the company’s retail network. Alloy and its franchisees currently operate in 47 US states and 15 countries, servicing more than 8,000 auto dealerships, collision shops, tire store accounts, rental car agencies, auctions and automotive centers, and retail consumers. Alloy was founded in 2001 and is headquartered in Norcross, GA (www.awrswheelrepair.com).

At closing of the transaction, Alloy Founder Tom Morris stepped down from his leadership role and Rob Wheeley, one of the company’s franchisees, was appointed CEO. Mr. Morris retains a minority stake in the business and will be a member of the Board of Directors.

Jarrett Turner nf2“We are very excited to announce Alloy Wheel Repair Specialists as Soundcore’s first-ever platform investment,” said Jarrett Turner, Managing Partner of Soundcore. “Alloy is perfectly aligned with our focus on founder- and family-owned businesses in fragmented industries, with stable, recurring revenue, where we can drive growth through accretive add-on acquisitions and operational improvements. Tom has built a market-leading company and we look forward to accelerating Alloy’s growth.”

Also at closing, Soundcore named Ken Walker and Bill Lasky as additional Alloy board members. Mr. Walker was formerly the CEO of Meineke Car Care Centers; Driven Brands; Parts, Inc.; and Cardis Corp., and is a past Vice Chairman of AAA and past Chairman of the International Franchise Association. Mr. Lasky, a Soundcore Operating Partner, has been appointed Chairman of Alloy. He has more than 40 years of experience in the auto industry including senior executive or board positions at Stoneridge, Accuride Corporation and Affinia Group.

According to Soundcore, wheel repair is among the fastest-growing sub-sectors within the auto-reconditioning market, accounting for more than $750 million in annual revenues in the US alone.

“I am very fortunate to be stepping into a great situation at Alloy,” said Mr. Wheeley. “There is a tremendous opportunity for Alloy to grow organically and through strategic acquisitions. With Soundcore’s resources and the experience that Ken Walker and Bill Lasky bring, we have a huge advantage to make investments in the business that really matter, enhance our operational execution, and really outpace the competition.”

soundcore nf1Soundcore Capital Partners invests from $4 million to $30 million of control equity in lower middle market companies that are headquartered in the US or Canada. Typical targets will have from $3 million to $15 million in EBITDA. Sectors of interest include automotive, building products, business services, chemicals, consumer products, distribution, energy services & products, food & beverage, general manufacturing, healthcare services, industrial machinery & services, packaging, plastics, and transportation. Soundcore was founded in 2015 and is based in New York (www.soundcorecap.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-17-15

Roark Acquires CARSTAR Auto Body

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carstar nf1Driven Brands, a portfolio company of Roark Capital, has acquired Kansas-based CARSTAR Auto Body Repair Experts from Champlain Capital Partners which acquired the company in May 2008.

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 nf5CARSTAR 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.

Jonathan Fitzpatrick nf1“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

Hellman & Friedman to Acquire Kadel’s Auto Body

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KADELS NF1ABRA Auto Body & Glass, a portfolio company of Hellman & Friedman, has signed an agreement to acquire Kadel’s Auto Body, a portfolio company of KCB Private Equity since August 2007.  Hellman & Friedman acquired ABRA Auto Body & Glass from Palladium Equity Partners in August 2014.

Kadel’s is an auto-body service provider serving the Pacific Northwest region.  The company has grown both organically and through acquisitions and currently operates 23 locations in Oregon, Washington and Idaho. The company was founded in 1954 and is headquartered south of Portland in Tigard, OR (www.kadels.com).

kadels nf4

ABRA is a national provider of vehicle damage repair services.  The company provides collision repair, paintless dent removal, and auto glass repair and replacement services through 286 company-owned and franchised vehicle damage repair centers in 22 states.  ABRA’s services enable its insurance company partners to improve customer satisfaction and drive policyholder retention, while reducing repair costs and driving efficiencies in the claims process. ABRA was founded in 1984 and is headquartered in Minneapolis (www.abraauto.com).

KCB Private Equity makes control investments in public or private companies that have $10 million to $60 million in recurring revenue and $1 million to $6 million of EBITDA with margins of greater than 10%. Industries of interest include retail; consumer products and services; business services and outsourcing (including technology and software tools); healthcare services (including skilled nursing facilities); education and training services and products; light manufacturing; and value-added distribution. KCB Private Equity was founded in 1986 and is based in Pasadena, CA (www.kcbpem.com).

Hellman & Friedman invests from $300 million to $1 billion in companies across a range of industries including energy & industrials; software; business and marketing services; internet and digital media; financial services and insurance; media; and healthcare. Founded in 1984, the firm has raised and managed over $25 billion of committed capital and invested in over 60 companies.  Since forming its first partnership in 1987, Hellman & Friedman has raised over $35 billion of committed capital. The firm is based in San Francisco with additional offices in London and New York (www.hf.com).

Harris Williams & Co. (www.harriswilliams.com) is the exclusive advisor to Kadel’s on its sale to ABRA Auto Body & Glass.  The transaction is being led by Joe Conner of Harris Williams & Co.’s Transportation & Logistics Group and Ryan Budlong, Matt Conaty and Zach England of the firm’s Consumer Group.

“We are thrilled to have represented Kadel’s shareholders in this transaction, which represents another marquee deal for Harris Williams & Co. in the automotive aftermarket services sector,” said Mr. Conner, a managing director at Harris Williams & Co. “Given our recent automotive aftermarket services sector success with Caliber Collision Centers, ABRA, Mister Car Wash, Dent Wizard, Driven Brands and Kadel’s, we believe that strong and broad-based interest from both strategic and financial buyers will continue in this vibrant portion of the aftermarket.”

2015 PEPD • Private Equity’s Leading News Magazine • 6-29-15

H.I.G. Sells Dent Wizard to Gridiron Capital

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dent wizard nf1H.I.G. Capital has completed the sale of Dent Wizard International to Gridiron Capital.  In November 2010, H.I.G. acquired Dent Wizard through a carve-out from Manheim Auctions, a wholly owned subsidiary of Cox Enterprises, and recruited a new management team to run the business.

Dent Wizard offers a range of reconditioning services for vehicles, such as removing dents, dings, creases and hail damage from vehicles without affecting the original factory finish. Other services include bumper, scratch, wheel, leather and vinyl, and carpet and fabric repair services.  Dent Wizard provides its services to car dealerships, automobile manufacturers, auto auctions, body shops and collision centers, rental car agencies, insurance companies, fleet owners and operators and individual vehicle owners. Dent Wizard was founded in 1983 and is headquartered in the St. Louis suburb of Bridgeton (www.dentwizard.com).

fraser preston nf2“Dent Wizard is an exceptional company with a bright future. We are proud of the work we did in partnership with the very talented management team to carve the business out of the corporate parent, reverse the negative growth trajectory at the time of our acquisition, and substantially increase EBITDA over the course of our four year ownership. This investment will provide an attractive return for H.I.G. and its investors, which is a testament to Dent Wizard’s successful transformation,” said H.I.G. Capital Managing Director Fraser Preston.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $17 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

“H.I.G. has been a highly effective partner that provided invaluable operational and strategic guidance. H.I.G.’s support for the company’s growth initiatives put the business on a high growth trajectory that we feel confident will allow us to continue to succeed,” said CEO of Dent Wizard Terry Koebbe.

Gridiron Capital, the buyer of Dent Wizard, invests in manufacturing, service and specialty consumer companies that have EBITDAs from $5 million to $30 million and that are located in the United States and Canada. The firm is based in New Canaan, CT (www.gridironcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 4-14-15

Palladium Sells ABRA Auto Body to Hellman & Friedman

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abra auto nf1ABRA Auto Body & Glass, a vehicle repair provider and a portfolio company of Palladium Equity Partners, has signed an agreement to be acquired by Hellman & Friedman and members of ABRA`s senior management team.  The transaction is expected to close in the third quarter of 2014.

ABRA is a national provider of vehicle damage repair services.  The company provides collision repair, paintless dent removal, and auto glass repair and replacement services through 186 company-owned vehicle damage repair centers and 48 franchised centers in 19 states.  ABRA’s services enable its insurance company partners to improve customer satisfaction and drive policyholder retention, while reducing repair costs and driving efficiencies in the claims process. ABRA was founded in 1984 and is headquartered in Minneapolis (www.abraauto.com).

Luis Zaldivar nf1“We are proud to have been part of ABRA’s successful growth over the past three years. During our partnership, we worked closely with ABRA`s exceptional management team to enter new markets, accelerate the company`s acquisition program and enhance the company`s industry-leading capabilities. We are confident Hellman & Friedman will be an ideal partner in the next stage of the company’s development,” said Luis Zaldivar, Managing Director of Palladium.

Palladium Equity Partners targets investments in financial services, business services, food, healthcare, industrial and media businesses.  Palladium has a focus on companies that operate in the rapidly growing US Hispanic market – a market segment where the firm has expertise, a broad network and an extensive track record of investing.  Since its founding in 1997, Palladium has invested over $1 billion of capital in more than 20 platform investments and over 50 add-on acquisitions.  The firm is based in New York (www.palladiumequity.com).

Erik Ragatz nf1“Within the $30-billion collision repair sector ABRA stands out as a highly-respected, exceptionally well-run business,” said Erik Ragatz, managing director of Hellman & Friedman. “Built on a foundation of delivering superior standards for repair quality and customer service, ABRA has become a trusted partner of leading automotive insurers and a reliable source for quality collision repair services across the nation. We see outstanding growth prospects ahead and look forward to partnering with ABRA`s team to continue to execute on their strategic plan.”

Hellman & Friedman invests from $200 million to $750 million in companies across a range of industries including energy & industrials, software, business & marketing services, internet & digital media, financial services, insurance, media, and healthcare. Founded in 1984, the firm has raised and managed over $25 billion of committed capital and invested in over 60 companies. The firm is currently investing its sixth fund, with $8.4 billion of capital commitments. Hellman & Friedman is based in San Francisco with additional offices in London and New York (www.hf.com).

Harris Williams & Co. acted as advisor to ABRA in connection with the transaction. Greenberg Traurig and Simpson Thacher & Bartlett served as legal advisors to ABRA and Hellman & Friedman, respectively.

2014 PEPD • Private Equity’s Leading News Magazine • 8-5-14

OMERS Acquires Caliber Collision Centers

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calibar nfOMERS Private Equity has acquired Caliber Collision Centers from private equity firm ONCAP, Onex Corporation’s mid-market private equity platform.

Caliber is a provider of automotive collision repair services with a network of 157 collision centers located in California, Texas, Arizona, Nevada, Oklahoma and Colorado. The company has approximately 3,700 employees and repairs more than 285,000 vehicles annually. Caliber is headquartered in Dallas (www.calibercollision.com).

“We are thrilled to partner with Steve Grimshaw, President and CEO of Caliber, and his management team for the company’s next phase of growth,” said Tim Patterson, Senior Managing Director at OPE. “We believe that Caliber will continue to distinguish itself as the market leader in the highly fragmented collision repair industry in the years ahead.”

OMERS Private Equity manages the private equity activities of OMERS, one of Canada’s largest pension funds. The group’s investment strategy includes the active ownership of businesses in North America and Europe. Sectors of interest include manufacturing, financial and business services, industrial and consumer products, transportation, and technology. Investment sizes range from $100 million to $500 million. The firm is located in Toronto with offices in New York and London and has $6 billion of investments under management (www.omerspe.com).

Onex Corporation makes private equity investments through the Onex Partners and the ONCAP families of funds. Onex has more than $16 billion of assets under management and is based in Toronto with additional offices in New York and London (www.onex.com).

BB&T Capital Markets served as financial advisor to Caliber and ONCAP in the transaction. The sale of Caliber represents BB&T Capital Markets’ fifth sale of a major collision repair chain in the last five years.

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-22-13

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