Consolidation continues in crash repair?
CCC Information Services and Service King could both be on the market shortly, according to reports in Bloomberg.
It’s understood that private investment firms TPG Capital and Leonard Green & Partners are considering selling claims and repairs solutions provider CCC Information Services. Leonard Green acquired CCC in November 2012 for $550 million from Investcorp SA, a fund based in Bahrain, before selling half its stake to TPG Capital.
CCC, currently expanding into China, where TPG has already invested in a number of tech companies, is estimated to be worth $3bn.
Meanwhile, The Blackstone Group and Carlyle Group could be about to offload Service King for $2bn. Carlyle acquired Service King in 2012 when it only operated 49 sites, all in Texas. In 2014 it sold a majority stake to Blackstone for $650m, and Service King now operates in 312 locations in 23 states.
Both CCC and Service King have grown significantly in value since 2012, but have further growth potential – CCC in China while Service King still has a less than 10% market share in America.
However, in a perhaps not unrelated move, Leonard Green has recently taken on a minority share in Caliber Collision, which operates 476 locations.