Earl Scheib to Be Acquired by Private Equity - aftermarketNews

Earl Scheib to Be Acquired by Private Equity

The transaction is valued at approximately $8 million.

SHERMAN OAKS, Calif. — Earl Scheib Inc. has entered into a definitive merger agreement with Kelly Capital LLC, a San Diego-based private equity fund.

Kelly Capital will acquire all of the issued and outstanding shares of the common stock of Earl Scheib for $2 per share in cash. The price reflects a 567 percent premium over the last closing price of Earl Scheib’s common stock as quoted on the Pink Sheets on Feb. 18, and the transaction is valued at approximately $8 million.

Concurrent with the execution of the merger agreement, Kelly Capital paid Earl Scheib $1 million, which becomes non-refundable to Kelly Capital if Kelly should breach the merger agreement.

Earl Scheib’s board of directors unanimously approved the merger agreement and recommended its approval by company’s stockholders. Given stockholder majority approval, and the satisfaction of customary closing conditions, the transaction is expected to close by April 15.

Earl Scheib may still consider unsolicited alternative acquisition proposals from third parties subject to compliance with specific terms set forth in the merger agreement, including, without limitation, the payment of a break up fee, the refund of the $1 million amount previously paid to Earl Scheib and expense reimbursement to Kelly Capital in the event an alternative transaction is recommended to the stockholders by the board.

According to Christian Bement, president and chief executive officer of Earl Scheib, the company began the formal process of exploring strategic alternatives with the assistance of its financial advisor in March 2008.

“The sole focus of our process was the enhancement of stockholder value,” Bement said. “This merger is the culmination of that process, in which we explored a wide range of strategic and financial alternatives. It is our firm belief that this transaction provides the best possible alternative for our stockholders, while at the same time preserving the Earl Scheib name and operation. As a company, we have always been, and will continue to be focused on serving the best interests of our stockholders. Despite the continuing unprecedented turbulent economic climate, our belief in the strength of the Earl Scheib name has never wavered. By entering into this transaction with Kelly Capital, we continue to look ahead to the future.”

You May Also Like

Safelite Group Acquires Genuine Auto Glass

This is the second acquisition for Safelite in October.

Safelite Group, one of the nation’s leading vehicle glass services and recalibration companies and owner of Safelite AutoGlass, has announced an agreement to acquire the assets of Genuine Auto Glass in Seattle. The transaction was completed on Friday, Oct. 7. 

Genuine Auto Glass will leverage Safelite’s excellent operational systems, advanced safety system recalibration expertise, world-class distribution network, global purchasing power and strong insurance and commercial relationships. 

Opus IVS Releases New DriveSafe Diagnostics Software

This new release brings awareness to calibrations required while streamlining and reducing errors in ADAS calibrations for the collision shop.

Survey: More Shops Being Paid to Clear Customer Data

More collision repair facilities are getting paid for the labor to erase personal data for a customer whose vehicle has been declared a total loss.

Safelite Group Acquires Binswanger Auto Glass Division 

The business has operations throughout the Midwest and Southeastern U.S.

Kepner’s Precision Auto Krafters Joins 1Collision

Established more than 50 years ago, Kepner’s Precision Auto Krafters is a family run business located southwest of Kalamazoo and Grand Rapids.

Other Posts

NTSB Calls For Alcohol Detection In All New Vehicles

Driving under the influence of alcohol remains a leading cause of injury-involved highway crashes.

GFS Taps Maximum Equip as Preferred Supplier

Maximum Equipment & Technical Services is now GFS’s preferred automotive and truck refinish distributor in southern California.

BASF Reveals 2022-2023 Automotive Color Trends Collection

The collection title New Array refers to the thoughtful process of ordering values and responding to new needs.

Driven Brands Acquires Auto Glass Fitters

Driven Brands now serves customers across 160+ locations, and almost 700 mobile units across 41 states.