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.”