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Roark Capital considering USD 2bn sale of Driven Brands: Bloomberg
Posted on Wednesday, 14 August 2019 10:26
Private equity firm Roark Capital is looking to exit its four-year investment in automotive services group Driven Brands in a deal that could potentially fetch USD 2.00 billion, people familiar with the matter told Bloomberg.
According to these sources, advisors are currently being mandated to run an auction of the car repair and garage franchiser in the fourth quarter of 2019.
It is said to be likely that other buyout groups will be interested in Driven Brands; however, there can be no guarantee of a deal taking place as no final decision on the sale has been made.
The company manages automotive brands including 1-800 Radiator, Carstar, Maaco, Meineke Car Care Centres, Merlin 200,000 Mile Shops and Pro Oil Change.
Driven Brands has 2,400 employees, 2,500 locations and over 130 years’ experience in the industry, according to the website.
Some of the group’s services include repair and maintenance, paint and collision, distribution of air conditioners and a fuel delivery parts and oil changing unit.
The company was picked up by Roark Capital for an undisclosed amount in 2015 from Harvest Partners, which acquired the business in 2011 from Carousel Capital.
Since coming under the private equity firm four years ago, it has significantly expanded through acquisitions of 1-800 Radiator, Carstar Automotive Canada, the Lube Stop and Take 5 Oil Change.
Roark Capital has about USD 12.00 billion in equity capital raised since its inception and has bought 71 brands, which generate a combined USD 37.00 billion in system revenues.
Some of the buyout firm’s investments include Arby’s, Anytime Fitness, Buffalo Wild Wings and Cinnabon.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 100 deals targeting the automotive repair and maintenance sector announced worldwide this year; however, none of these transactions have exceeded USD 100.00 million.
The largest so far involves Shenzhen Anche Technologies agreeing to acquire a 75.0 per cent stake in China Inspection Group Automobile Inspection for CNY 262.50 million (USD 37.19 million) in cash in June.
UK-based breakdown service provider AA, Indonesian car workshop operator Jakarta Teknologi Utama and HK Motors of Hong Kong, among others, have also been targeted in 2019 to date.
© Zephus Ltd