NEW YORK – New York-based private equity firm Harvest Partners has acquired Driven Brands Inc., in partnership with management from Carousel Capital. Terms of the transaction were not disclosed.
Based in Charlotte, N.C., Driven is a leading franchisor in the automotive aftermarket services industry with a national franchising platform in the United States and Canada. Driven’s flagship service brands include Meineke and Maaco, two highly recognizable brands within the industry, in addition to several other brands. Driven’s nearly 1,500 locations are primarily franchised and generate almost $900 million in annual system-wide sales providing service to more than three million cars annually.
Driven’s management team, including Chairman and CEO Kenneth Walker, will continue to lead the company.
“Driven is in a great position to continue its growth both organically and through further consolidation of the automotive aftermarket industry,” said Ira Kleinman, senior managing director at Harvest Partners. “We are looking forward to partnering with Ken and his team to provide additional financial and strategic resources to continue to build on Driven’s success.”
“Driven Brands leverages a number of industry tailwinds including the increasing average age of vehicles, the increasing number of miles driven and the trend away from do-it-yourself car maintenance as vehicles and parts become increasingly complex,” added Walker. “The company is also growing same-store sales via new and existing customers due to our highly recognizable brands and superior customer experience. The management team is very excited to collaborate with Harvest and build upon Driven’s long history of success.”
“Driven is a leading franchisor with highly recognizable brands operating in the large, stable, and growing automotive aftermarket industry with numerous consolidation opportunities. The company generates strong cash flow and is led by a management team with a track record of success," said Paige Daly, principal at Harvest.
Kleinman, Jay Wilkins (Managing Director) and Daly of Harvest will be joining Driven’s Board of Directors. David Schwartz (Senior Associate) and Alexander C. Thorn (Associate) also worked on the transaction.
