Carstar acquired by Roark Capital Group
- October 23, 2015
- Posted by: Simon Wait
- Category: Industry News
US and Canadian based collision repair franchise, Carstar Auto Body Repair Experts has been acquired by Driven Brands Inc, a portfolio company of Roark Capital Group and the nation’s leading franchise automotive company.
Carstar is one of the largest multi-shop network of independently owned collision repair facilities in the U.S., operating in more than 240 locations in 30 states.
‘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-recognised 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 unrivalled North American powerhouse in automotive franchising.’
The acquisition gives Driven Brands the opportunity to create a new division called Paint & Collision, which will be led by the current Maaco Franchising Inc president, Jose R Costa, and comprised of Maaco, Carstar, and Drive N Style.
While operating as separate brands, the division’s new structure will allow the business to streamline services and share expertise to improve the customer experience and profitability for franchisees. Carstar will retain its current management team led by its chief executive officer, David Byers.
‘We will benefit from Driven Brands and the Roark Capital team’s extensive franchising knowledge across a number of retail categories including automotive, retail services and restaurants,’ said David Byers, CEO of Carstar Auto Body Repair Experts. ‘And, there are many opportunities for improving operational efficiencies, customer engagement and national branding as part of their portfolio. This move also will bring new capital resources to Carstar to continue to drive our growth.’
Incorporating Carstar into the Driven Brands portfolio, the brands will now generate annual system revenues of approximately $1 billion through 2,000 locations in 48 states and two countries.