Canadian private equity firm Penfund earlier this month invested in Caliber Collision Centers and Mister Car Wash (MCW), two existing portfolio companies. Penfund provided US$87 million in second-lien debt, the lead order for a new US$250 million credit facility, to Caliber, a U.S. collision repair shop operator controlled by OMERS Private Equity. Penfund also provided US$9.8 million in debt funding to MCW, a U.S. car wash operator controlled by Leonard Green & Partners. The deals, which supported dividend recapitalizations, were done via Penfund Capital Fund V, which raised $724 million last year.
Penfund Announces Two New Investments
TORONTO, Ontario (March 10, 2017) – Penfund, an independent provider of junior capital to middle market companies in the United States and Canada, announced today the completion of two new investments by Penfund Capital Fund V:
US$87.0 million second lien debt investment in Caliber Collision Centers (“Caliber”); and
US$9.8 million debt investment in Mister Car Wash (“MCW”).
Penfund provided a US$87.0 million lead order for a new US$250.0 million second lien credit facility raised to support a debt refinancing and dividend recapitalization of Caliber which is controlled by OMERS Private Equity. Caliber is the largest collision repair shop operator in the United States with 479 locations across 17 states.
Jeremy Thompson, a partner at Penfund, stated, “Penfund is delighted to continue our association with Caliber. We believe the business is positioned to maintain its strong growth under the leadership of an exceptional management team and the backing of OMERS. Caliber continues to drive efficiencies in the repair process that benefit both the payor and owner of the vehicle.”
The investment in MCW is incremental to an initial investment made in August 2014 by Penfund Capital Fund IV. The new debt raised by MCW supported a dividend recapitalization organized by MCW’s controlling shareholder, Leonard Green & Partners. MCW is the largest car wash operator in the United States with 212 locations across 20 states.
Jeremy Thompson stated, “We are pleased to support Leonard Green in its recapitalization of Mister Car Wash. We believe there remains considerable runway for the business to expand its market leading position through additional acquisitions.”
About Caliber Collision Centers
Caliber is the largest collision repair shop operator in the United States. Founded in 1997, Caliber currently owns and operates 479 collision repair facilities across 17 states. The company has over 10,000 employees and completes roughly 600,000 repairs annually.
About Mister Car Wash
MCW is the largest car wash operator in the United States. Headquartered in Tucson, Arizona, MCW operates 212 car washes in 20 states. The company offers both full-service (exterior/interior) and express (exterior-only) washes. The company has over 7,000 employees and completes more than 25 million washes annually.
Penfund is a leading provider of junior capital to middle market companies throughout North America. The firm is owned by its management team and is currently investing its most recently established fund, Penfund Capital Fund V. Penfund manages funds sourced from pension funds, insurance companies, banks, family offices and high-net-worth individuals and has invested more than $3 billion in over 225 companies since its establishment in 1979. Assets and capital under management currently exceed $1.2 billion.
Photo courtesy of Reuters/Rick Wilking