The combination joins two complementary leaders in the $47-billion-a-year collision repair industry.
“This combination will allow us to offer even greater satisfaction for our valued customers and insurance clients while creating new opportunities for the talented teammates of both companies,” said Steve Grimshaw, Caliber Chief Executive Officer. “With more than 1,000 stores in 37 states and the District of Columbia, we look forward to providing customers and insurance clients with the flexibility and convenience that come with the broadest geographic coverage in the United States and a full suite of services."
The combined company will offer customers and clients a single solution with more offerings, including dedicated non-drive, express and aluminum-certified and high-line repair centers. Customers will also benefit from increased choice, as substantial opportunities exist to expand the companies’ offerings, such as glass, mechanical, diagnostic scanning and calibration services and the broadest network of OEM-certified locations in the U.S.
Grimshaw continued, “We plan to maintain all existing centers from both companies as we develop and execute a plan to work smarter, generate growth, offer expanded services, drive operational excellence and reward talent across the organization. Recognizing the critical importance of top talent to our success, we will be retaining all teammates in the field at both Caliber and Abra centers, and we look forward to creating a culture that supports our teammates as they expand their careers across a larger organization, accelerated by industry-leading development programs.”
“Our industry becomes more complex every year,” said Abra CEO Ann Fandozzi. “The combined company will invest in the equipment, training and technologies that will allow our teammates to build their careers while continuing to meet and exceed our customers’ needs for years to come.”
Both companies remain completely committed to serving valued insurance clients through the companies’ partnership programs while maintaining and expanding strategic relationships with a single point of contact.
The company is also committed to continuing to serve Abra’s 59 franchisees with an even greater level of attention.
The transaction is expected to close in early 2019. Grimshaw will lead the combined company. During the transition, customers and insurance clients should expect to see no disruption to the service and repairs they receive at both companies.
Terms of the transaction were not disclosed. As part of this transaction, private equity firm Hellman & Freidman LLC---Abra’s majority shareholder since 2014---will become the majority shareholder of the combined company. Both OMERS and Leonard Green & Partners, L.P. (LGP) will remain significant minority shareholders in the combined company. OMERS currently owns a majority stake in Caliber and LGP owns a minority stake.