VIVE Collision Acquires Vinart Collision Center in PA
Published June 5, 2023
VIVE Collision successfully completed the acquisition of Vinart Collision Center in Allentown, PA, from the Vinart Family of Automobile Dealerships.
Vinart Collision Center will be renamed and continue operating as VIVE Collision of Lehigh Valley. Vinart Dealerships will retain ownership of its name and all other aspects of its retail automobile business.
The transaction includes a long-term partnership agreement whereby Vinart Dealerships and VIVE Collision will work together to support each organization’s operational activities in the region. The transaction, which marks VIVE’s entry into Pennsylvania, also highlights the company’s commitment to providing the highest quality repair standards in the industry and to building successful partnerships with automotive dealerships.
“Right around the start of the year, we were presented with a compelling offer to divest ourselves of the collision repair business and enter into a long-term commercial partnership with VIVE Collision," said Andrew Wright, managing partner of Vinart Dealerships. "In addition, we retain our wholesale parts relationship, and VIVE Collision will serve as the certified repair facility for the automotive brands we represent in the market and continue as our preferred collision center partner for our customers.
“We are normally net acquirers of assets and businesses, but in this case, the offer was too good to pass up," Wright continued. "We are very confident that VIVE will effectively service the collision repair needs of our customers and the community in a manner consistent with what we have been accustomed to delivering for the past four decades. We are extremely thankful for the years of dedicated service from the team members that will be departing to join the VIVE team. We look forward to the continued growth of our retail automobile sales and service operations in the Lehigh Valley and beyond.”
“We are thrilled to be partnering with Andrew and the Vinart Family of Automobile Dealerships, who share VIVE’s core values of People, Process and Passion, to provide best-in-class collision repair services to the Lehigh Valley region,” said Vartan Jerian Jr., co-founder and CEO of VIVE. “This transaction underscores our unwavering commitment to our OEM partners as well as our focus on obtaining OEM certifications that provide our teammates with the best training, equipment and parts to deliver the highest-quality possible repair for our customers. We welcome over 40 new teammates to the VIVE family and look forward to supporting the business’ continued success.”
Focus Advisors served as financial advisor to Vinart Dealerships.
Chris Lane, a partner of Focus Advisors, explained how the transaction was mutually beneficial: “For dealers looking to exit the body shop business, the successful formula is often to sell the body shop to a reputable buyer, establish a long-term lease for their space, and form a services agreement to become exclusive parts supplier and certifications sponsor while receiving preferential body shop services for the dealership. Andy Wright at Vinart recognized the value of this formula from the start.”
Although there has been considerable consolidation in both collision repair and dealership industries, Focus Advisors is seeing increasing interest by successful dealership owners to sell their body shops and enter services agreements.
Managing Director David Roberts wrote a paper, “Step Up or Step Back: Thoughts on Dealer Body Shops," in which he cited a recent case study that showed “six months after acquisition, the dealer is selling nearly twice as many parts to that same MSO [shop]. The MSO’s sales in that same location have doubled. The dealer is now receiving market rent for the shop. Cycle times on dealer referred repairs have improved by 35%. Additional dealer benefits have included fewer staffing challenges, lower investments in equipment and training, reduced occupancy costs and reduced insurance costs,” and concluded “dealers have choices---to step up, invest and perform at the level of competitive consolidators and MSOs---or step back and realize improved operational and financial benefits by selling their shops.”
Source: VIVE Collision