Blackstone to Acquire Majority Stake in Service King Collision Repair Centers
July 23 2014 - 8:00AM
Business Wire
Carlyle and Management to Retain Significant
Ownership in Service King after Helping Company More Than Triple
Number of Locations
Service King Collision Repair Centers, today announced a
partnership with private equity funds controlled by 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.
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.
Service King - WebsiteService King - FacebookService King -
Twitter
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.
Web: www.carlyle.comVideos: www.youtube.com/onecarlyleTweets:
www.twitter.com/onecarlylePodcasts:
www.carlyle.com/about-carlyle/market-commentary
About Blackstone
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.
Media:For Carlyle:Elizabeth Gill,
202-729-5385Elizabeth.gill@carlyle.comorFor Blackstone:Christine
Anderson, 212-583-5263Christine.Anderson@blackstone.com
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