Harvest Partners Announces Acquisition of Driven Brands, Inc.

NEW YORK--(BUSINESS WIRE)-- December 19, 2011--Harvest Partners, LP (“Harvest”), a New York-based private equity firm, announced today that it has completed the acquisition of Driven Brands, Inc. (“Driven” or the “Company”), in partnership with management, from Carousel Capital. Terms of the transaction were not disclosed.

“Driven is in a great position to continue its growth both organically and through further consolidation of the automotive aftermarket industry”

Based in Charlotte, North Carolina, Driven is a leading franchisor in the automotive aftermarket services industry with a national franchising platform in the United States and Canada. Driven’s flagship service brands include Meineke and Maaco, two highly recognizable brands within the industry, in addition to several other brands. Driven’s nearly 1,500 locations are primarily franchised and generate almost $900 million in annual system-wide sales providing service to more than three million cars annually.

Driven’s management team, including Chairman and CEO Kenneth D. Walker, will continue to lead the Company.

“Driven is in a great position to continue its growth both organically and through further consolidation of the automotive aftermarket industry,” said Ira D. Kleinman, Senior Managing Director at Harvest Partners. “We are looking forward to partnering with Ken and his team to provide additional financial and strategic resources to continue to build on Driven’s success.”

“Driven Brands leverages a number of industry tailwinds including the increasing average age of vehicles, the increasing number of miles driven, and the trend away from do-it-yourself car maintenance as vehicles and parts become increasingly complex,” said Ken Walker, Chairman and CEO. “The Company is also growing same-store sales via new and existing customers due to our highly recognizable brands and superior customer experience. The management team is very excited to collaborate with Harvest and build upon Driven’s long history of success.”

“Driven is a leading franchisor with highly recognizable brands operating in the large, stable, and growing automotive aftermarket industry with numerous consolidation opportunities. The Company generates strong cash flow and is led by a management team with a track record of success," said Paige Daly, Principal at Harvest.

Senior debt was provided by the Senior Secured Loan Program, which is jointly managed by an affiliate of GE Capital and Ares Capital Corporation. In addition, GE Antares Capital provided a revolving credit facility. DLJ Investment Partners provided mezzanine debt financing. White & Case LLP and Alvarez & Marsal advised Harvest. Credit Suisse Securities and K&L Gates LLP advised the Company.

Ira D. Kleinman, Jay Wilkins (Managing Director) and Paige Daly of Harvest will be joining Driven’s Board of Directors. David J. Schwartz (Senior Associate) and Alexander C. Thorn (Associate) also worked on the transaction.

About Harvest Partners

Founded in 1981, Harvest Partners, LP (www.harvpart.com) is a leading New York-based private equity investment firm pursuing management buyouts and growth financings. Harvest focuses on acquiring profitable companies in the business and industrial services, manufacturing and distribution, midstream energy and consumer products and retail sectors. This strategy leverages Harvest’s over 30 years of experience in financing organic and acquisition-oriented growth companies.

About Driven Brands

Driven Brands, Inc., headquartered in Charlotte, NC, serves as parent company for the separate businesses: Maaco (a franchise-based automotive body repair and paint retail network) Meineke Car Care Centers, Inc. (a franchise-based automotive service and repair retail network); Econo Lube & Tune (a franchised chain of automotive repair/quick lube services); a franchised network of mobile services consisting of AutoQual, Aero-Colours & Drive N Style (specializing in automotive interior reconditioning and maintenance, paint refinishing and restyling services for Car Dealerships) and Tortal.net (developer of on-line training solutions for a variety of industries). Management team members serve on the industry association boards, the IFA and AAIA.

Contacts

Harvest Partners
Ira Kleinman, 212-599-6300
ikleinman@harvpart.com
or
Owen Blicksilver Public Relations
Joanne Lessner, 212-222-7436
joanne@blicksilverpr.com

 

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