Driven Brands Inc., a portfolio company of Roark Capital and a leading franchise automotive company, has acquired Kansas-based CARSTAR Auto Body Repair Experts. CARSTAR is one of the largest multi-shop networks of independently owned collision repair facilities in the U.S., operating in more than 240 locations in 30 states.
“At Driven Brands, we are committed to expanding our footprint through the acquisitions of complementary brands that can help elevate our presence in the communities we serve,” said Jonathan Fitzpatrick, president and CEO of Driven Brands. “CARSTAR – an iconic brand that is well-recognized and respected by leading insurance companies – brings us additional expertise in the collision repair business. We are excited about the strength this addition brings to the Driven Brands family creating an unrivaled North American powerhouse in automotive franchising.”
The acquisition gives Driven Brands the opportunity to create a new division called Paint & Collision, which will be led by the current Maaco Franchising Inc. President Jose Costa and will be comprised of Maaco, CARSTAR and Drive N Style. While operating as separate brands, the division’s new structure will allow the business to streamline services and share expertise to improve the customer experience and profitability for franchisees. CARSTAR will retain its current management team led by CEO David Byers.
“We will benefit from Driven Brands and the Roark Capital team’s extensive franchising knowledge across a number of retail categories including automotive, retail services and restaurants,” said Byers. “And, there are many opportunities for improving operational efficiencies, customer engagement and national branding as part of their portfolio. This move also will bring new capital resources to CARSTAR to continue to drive our growth.”
Costa has served as president of Maaco for the past three years and will apply his heightened expertise to lead the Paint & Collision business segment. He will blend best practices and create opportunities to leverage purchasing power across the system.
“We are energized by the addition of CARSTAR to the Driven Brands portfolio, and know it will play an important part in the newly created Paint & Collision business segment,” said Costa, group president of Paint & Collision, Driven Brands. “I look forward to working with the new members of our franchisee family and to bringing technological developments and competitive pricing to all of our customers.”
Driven Brands manages a family of automotive companies including MAACO, Meineke Car Care Centers, 1-800 Radiator, Merlin 200,000 Mile Shops, Pro Oil Change, Econo Lube & Tune, AutoQual, Aero-Colours and Drive N Style. Incorporating CARSTAR into the Driven Brands portfolio, the brands will now generate annual system revenues of approximately $1 billion through 2,000 locations in 48 states and two countries.