Equicapita acquires auto repair franchisor Master Mechanic

Canadian private equity firm Equicapita has acquired The Master Mechanic Inc, a Mississauga, Ontario-based franchisor of aftermarket automotive maintenance and repair service centres.

Terms weren’t disclosed. The sellers were owner-operators Hugh Welsford and Jamie Holmes, who acquired the company in 2004.

Established in 1982, Master Mechanic has 39 franchise locations throughout Ontario.

The acquisition is Equicapita’s eleventh to date, its first in the automotive aftermarket maintenance and repair service space, and its third involving a franchise business. It was led by Managing Director Adam Jezewski.

In December, Equicapita acquired Shaw Group of Dental Laboratories, a Toronto-based network of dental laboratories.

PRESS RELEASE

Equicapita Announces Acquisition of The Master Mechanic Inc.

MISSISSAUGA, ON, April 10, 2019 /CNW/ – Equicapita Income Trust and Equicapita Investment Corp. (collectively, “Equicapita”) are pleased to announce the completion of the acquisition of The Master Mechanic Inc. (“Master Mechanic”) by a wholly-owned subsidiary of Equicapita (the “Acquisition”).

Founded in 1982, Master Mechanic is one of the leading franchisors of aftermarket automotive maintenance and repair service centers in Ontario. With 39 locations located throughout Ontario, Master Mechanic has established enduring franchisee relationships and a reputation for outstanding customer service.

The opportunity to acquire a successful automotive aftermarket maintenance and repair service business with a diverse and growing base of recurring royalty revenue adds industry diversification to Equicapita’s investment portfolio and continues our growth into Eastern Canada. “Since acquiring Master Mechanic in 2004, Hugh Welsford and Jamie Holmes, Master Mechanic’s owner-operators, have consistently grown system revenue and strengthened the business’ operating processes, brand and presence in the communities that Master Mechanic serves,” said Equicapita’s Managing Director, Eastern Canada, Adam Jezewski. “Equicapita is targeting investment opportunities in the mature automotive repair market due to the counter- cyclical and growing demand for these services and favorable long-term outlook, driven by an aging vehicle population throughout Canada. In addition to meeting these criteria, Master Mechanic has dedicated head office staff and many successful, long-term franchisees. We are fortunate and excited to have the opportunity to partner with the Master Mechanic team and franchisees to continue strengthening and growing the business and brand going forward.”

Equicapita and our new Master Mechanic colleagues are expected to continue to build the legacy that Hugh, Jamie and the Master Mechanic franchisees have worked hard to build. “Since our initial meeting with the current owners, it has been clear that they care about the success of their franchisees and satisfaction of Master Mechanic’s end customers. We look forward to supporting the ongoing growth and success of the business,” said Michael Cook, co-founder and Director of Equicapita.

Consistent with Equicapita’s investment mandate of assembling a diversified portfolio of long- established Canadian businesses, Master Mechanic has 37 years of operating history serving communities across Ontario. Master Mechanic’s track record of generating consistent, profitable growth through excellent customer and supplier relationships, represent cornerstones of Equicapita’s investment strategy.

Master Mechanic is Equicapita’s eleventh portfolio company acquisition, its first automotive aftermarket maintenance and repair service investment, second investment completed by Equicapita’s Eastern Canadian office during its inaugural year of operations and third acquisition of a franchise business. Equicapita’s deal team was led by Adam Jezewski, with key contributions from Hass Keshavji, Kerri Furlong and Matt Barr. Equicapita retained Norton Rose Fulbright Canada LLP as legal advisors in connection with the Acquisition.

About Equicapita

Founded in 2013, Equicapita is a private company buyout fund with offices in Calgary, Alberta and Burlington, Ontario with over $250 million in AUM focused on acquiring private, Canadian businesses with enterprise values ranging from $5 million to $50+ million.

For further information: Adam Jezewski, Managing Director, Eastern Canada, Tel: 905.336.8951, E-mail: adam@equicapita.com