CSN Collision announced Oct. 23 a new partnership with ONCAP, a private equity platform of Onex Corporation, to provide financial backing as CSN grows both its existing network of licensed independently owned shops and a new platform of corporate-owned shops in the U.S. and Canada.
Ryan Bruno, president and CEO of CSN, told Autobody News the new platform will be mutually beneficial for the company and its licensees.
“They will reinforce each other,” he said.
CSN was established in 2002 by four independent shop owners — who are still company shareholders — to support the network of shops through training, operational guidance, and the development of carrier and vendor relationships. The network has more than 400 licensees in the U.S., Canada and Italy.
Within the past 12 months, CSN has acquired two corporate locations in the Toronto area. The partnership with ONCAP has enabled CSN to merge with 12 additional licensee shops located around the western end of Lake Ontario.
Bruno said the platform creates an option for CSN licensees to sell their shop directly to the company when they are ready to retire, if they want to keep the shop in network to minimize disruption to staff and customers.
At the same time, it also provides CSN with the ability to purchase shops of any size, providing better coverage to its insurance partners. A stronger partnership with insurers means a stronger working relationship with all shops in the network.
“Having corporate locations strengthens the continuity and stability of our network,” Bruno said. “It also allows us to build stronger, more direct relationships with insurers.
“And on the other side, it is beneficial to those 14 corporate locations to be part of a large group with that substantial footprint.”
It’s both reactive and proactive, Bruno said.
“We're living through a period of consolidation and generational transitions in the collision industry,” he said. “It's expected that as the industry evolves that we're taking the right steps to make sure that the network that we operate has continuity, stability and even sustainability for many years into the future.”
Bruno said the majority of CSN’s locations are independently owned and operated by licensees.
“That is going to continue to be our core focus,” he said.
Licensees will benefit from the ONCAP funding as it will be used to improve existing programs for training and marketing.
In addition, the corporate locations will be where CSN will test new technologies and repair techniques for ADAS, EVs, specialty materials and more, which will then be rolled out to the entire network if beneficial.
“It’s twofold,” Bruno said of how the new investment will help licensees.
“CSN has an exceptional reputation for leadership and innovation in the collision repair industry,” said Rene Boissonnault, principal at ONCAP, in a statement. “We are thrilled to be partnering with the company as it embarks on its next phase of growth, pursuing both organic initiatives and acquisition opportunities, while building on CSN’s unique culture and long-standing commitment to excellence in collision repair.”
Abby Andrews