Blackstone to Acquire Majority Stake in Service King Collision Repair Centers
Carlyle and Management to Retain Significant Ownership in Service King after Helping Company More Than Triple Number of Locations
Washington, DC, New York, NY and Dallas, TX – Service King Collision Repair Centers, today announced a partnership with Blackstone (NYSE: BX) to recapitalize one of the largest independent U.S. chains of automobile body repair centers. The Carlyle Group (NASDAQ: CG) together with its co-investors and the management and employees of Service King will retain a significant minority stake in the Company. Terms of the transaction, which is expected to close during the third quarter, were not disclosed.
Established in 1976 and headquartered in Dallas, Texas, Service King now operates 177 locations across 20 states, having grown under Carlyle’s ownership from 47 locations in Texas.
“We are grateful for our partnership with the skilled and knowledgeable teams at the Carlyle U.S. Equity Opportunity Fund and Carlyle Strategic Partners,” said Chris Abraham, Service King’s Chief Executive Officer. “Service King’s recent growth is an example of Carlyle’s long-term approach to value creation and we look forward to working with our new partners at Blackstone to continue executing on our strategy.”
Shary Moalemzadeh, Carlyle Managing Director and Co-Head of Carlyle Strategic Partners, said, “In a fragmented industry, Service King has grown tremendously and Carlyle is proud to have supported their achievements. We will continue to support Service King’s business and growth strategy and we are pleased with the successes we have achieved together thus far during Carlyle’s investment period.”
David Stonehill, Carlyle Managing Director and member of the Carlyle U.S. Equity Opportunity investment team said, “We are delighted to have partnered with management and employee-owners in expanding the business over the past two years and look forward to continuing management’s expansion plans for the business. Service King’s commitment to its customers and focus on high quality service in collision repair initially attracted us to this investment, and we welcome Blackstone’s partnership in further strengthening the brand and business.”
Peter Wallace, Blackstone Senior Managing Director, said, “We are excited to invest in Service King – an industry leader with an unparalleled commitment to its customers and focus on high quality service. We look forward to partnering with management, the Company’s employee-owners, and Carlyle to support Service King’s continued growth and expansion.”
Equity for Carlyle’s August 2012 investment in Service King came from the $1.1 billion Carlyle U.S. Equity Opportunity Fund and the$700 million Carlyle Strategic Partners Fund III L.P.
Carlyle’s U.S. Equity Opportunity Fund builds on the firm’s two decades of investing in the mid-market buyout space. Recent deals include: Galaxy Brands, a consumer brand acquisition and development platform and ECi Software Solutions, a provider of enterprise resource planning and business applications. Carlyle Strategic Partners specializes in investments in companies that are operationally sound yet have near-term financial needs. Recent deals include: Klenk Holz AG, a European company in the wood-product industry, and Waddington North America, a manufacturer of premium plastic foodservice disposables.
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About Service King
Service King is one of the largest multi-shop operators of collision repair facilities in the country, dedicated to offering customers an overall superior service experience. Founded more than 38 years ago in Dallas, Texas, Service King is a leader in the collision repair industry currently serving customers at 177 locations across twenty states.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $199 billion of assets under management across 120 funds and 133 fund of funds vehicles as of March 31, 2014. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,600 people in 38 offices across six continents.
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with almost $300 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
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