Wednesday, 25 July 2012 22:30

Service King to be acquired by Carlyle Group

Auto body MSO Service King is to be acquired by a management-and-employee team led by the Carlyle Group, a major private equity firm.  Service King is the largest independent U.S. chain of auto body repair shops.

Service King Collision Repair Centers is headquartered in Dallas, Texas. Service King was established in 1976 and today operates 49 locations in the Dallas-Fort Worth, Houston, San Antonio and Austin metropolitan areas. will be bought out by a consortium made up of The Carlyle Group and the company’s management.

Financial terms were not disclosed. The transaction is expected to close in August.

Founder Eddie Lennox will still retain a minority ownership stake in Dallas-based Service King. CEO Cathy Bonner will become chairman of the board and will represent Lennox on the board.

Service King currently operates 49 locations in the Dallas-Fort Worth, Houston, San Antonio and Austin metropolitan areas. In the last three years, the company’s revenues and location count have doubled.

Part of the reason The Carlyle Group is buying Service King is to help the company expand nationally. The investment capital will come from Carlyle Equity Opportunities Fund LP and Carlyle Strategic Partners Fund III LP.

 

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."

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