Automotive services company Driven Brands Holdings Inc. announced the expansion of its auto glass offering into the U.S. with the acquisition of Auto Glass Now (AGN).
AGN is an industry leader, backed by over 20 years of experience, in auto glass repair, replacement, and calibration with more than 75 locations throughout the U.S., says Driven Brands.
The total addressable market for auto glass repair in North America is approximately $5 billion and growing. This acquisition makes Driven Brands one of the largest auto glass service providers in North America.
“The automotive aftermarket is evolving, and we are incredibly bullish that glass services will be a key beneficiary of that evolution,” said Jonathan Fitzpatrick, president and CEO, Driven Brands. “The growth and highly fragmented nature of auto glass services makes our entrance into the U.S. market an ideal strategic investment for Driven Brands.”
AGN will be reported in Driven Brands’ Paint, Collision, and Glass segment, adding over 75 company-operated locations. Fiscal 2021 revenue for AGN is expected to be approximately $85 million, and the business generates EBITDA margins of approximately 25%.
“Glass repairs are growing as a percentage of auto repairs and repair complexity is increasing due to the necessary calibration,” said Michael Macaluso, EVP of Driven Brands and Group President, Paint, Collision, and Glass. “Glass presents another exciting opportunity to leverage our proven playbook of consistent and repeatable growth to continue capturing market share.”
Driven Brands first entered the glass business in Canada in 2019, and serves retail, insurance, and fleet customers. Driven Brands now operates over 300 glass locations in both the United States and Canada.
Driven Brands said it acquired AGN for approximately $170 million on Dec. 30, 2021. As part of the transaction, the company incurred a $56 million transaction expense in the fourth quarter of fiscal 2021. The purchase price and transaction expense were funded with cash on hand.