The Carlyle Group is acquiring a majority stake in Service King Collision Repair Centers. Financial terms weren’t announced. Company management and employees are also investing, according to a statement. Eddie Lennox, who founded Service King, will retain a significant stake. Dallas-based Service King operates 49 auto body repair shops. The investment came from Carlyle Equity Opportunities Fund L.P. and Carlyle Strategic Partners Fund III L.P.
Global alternative asset manager The Carlyle Group (NASDAQ: CG), together with management and employees of Service King Collision Repair Centers, today announced they will acquire majority ownership in the largest independent U.S. chain of auto body repair shops. Founder Eddie Lennox will retain a significant ownership stake in Service King. Chief Executive Officer Cathy Bonner will become Chairman representing Mr. Lennox on the board of directors.
New equity for the investment will come from Carlyle Equity Opportunities Fund L.P. and Carlyle Strategic Partners Fund III L.P. Terms of the transaction, which is expected to close in August, were not disclosed.
Shary Moalemzadeh, Carlyle Managing Director and a member of the Carlyle Strategic Partners investment team, said, “We are pleased to partner with the Lennox family, management and employee-owners in further growing the business. Service King’s unparalleled commitment to its customers and focus on high quality service in the collision repair business attracted us to this investment.”
Adam Glucksman, Carlyle Managing Director and member of the Carlyle Equity Opportunities investment team, said, “In Service King and its team, we see the opportunity to help a proven operator break through to the next level of scale in a fragmented industry.”
“I am thrilled to have found a partner in The Carlyle Group who shares my vision for expanding our company nationally,” said Mr. Lennox. “We purposely sought out Carlyle based on its record of value creation. Carlyle will continue our commitment to employee ownership and providing customers with the highest level of quality and service in the industry.”
Established in 1976 and headquartered in Dallas, Texas, Service King operates 49 locations in the Dallas-Fort Worth, Houston, San Antonio and Austin metropolitan areas and has doubled its revenue and location count in the past three years. As it embarks on a national expansion, Service King in May announced its planned entry into the Arizona market by partnering with Auto Body World Inc., which owns nine locations in the state.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with approximately $159 billion of assets under management in 94 active funds and 63 fund of fund vehicles as of March 31, 2012. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has developed expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs approximately 1,300 people in 32 offices across six continents.
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About Service King
Service King Collision Repair Centers was founded 36 years ago by Eddie Lennox with one location in Dallas, Texas. Now, with 23 Dallas-Fort Worth locations, 12 Houston locations, 9 San Antonio, and 5 Austin, Texas locations, Service King recently announced national expansion plans to acquire nine collision centers in Arizona later this summer.
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The Carlyle Group
Liz Gill, +1 202-729-5385