Mavis Discount Tire has signed a definitive agreement to merge with Express Oil Change & Tire Engineers, a Golden Gate Capital portfolio company, creating one of the largest independent automotive service platforms in the U.S. Upon closing, the combined company will be led by Mavis’ current Co-CEO’s, David and Stephen Sorbaro. Express’ CEO Ricky Brooks will be named executive chairman.
ONCAP is selling its stake in Mavis to Golden Gate Capital, which, along with the Sorbaros, will be significant shareholders in the combined company. Financial terms of the transaction, which is expected to close in the first half of 2018, were not disclosed.
The combined company will operate more than 830 locations in 24 states across the East Coast, South and Midwest. Golden Gate Capital expects to continue to invest in this scale platform to accelerate new unit development and to acquire additional automotive service providers in the combined companies’ core and contiguous markets.
“We are thrilled to partner with Express and Golden Gate Capital to create a leading company in the auto service industry in terms of service center footprint, financial strength and service quality. We have long admired Ricky and the entire Express team, who share the same values of integrity, trust and outstanding customer service,” said David Sorbaro, co-CEO of Mavis Discount Tire. “Express is the ideal partner as we continue to expand our footprint nationally.
We’re grateful for ONCAP’s support throughout its ownership, and Stephen and I look forward to continuing to provide customers at Mavis and Express with the very best auto care in the industry.”
“This exciting transaction unites two customer-driven companies with a deep-rooted service ethic. Mavis has long been a leader in providing cost-effective and quality tires and service, and we are delighted for the opportunity to partner with them and benefit from each other’s expertise,” said Ricky Brooks, CEO of Express Oil Change & Tire Engineers. “I am confident that together, Mavis and Express will create an entirely new standard of auto care in the U.S.”
Josh Cohen, a managing director at Golden Gate Capital, said, “For years we have observed both Mavis’ and Express’ tireless dedication to their customers and operational excellence and we’re elated to have the opportunity to partner with the Sorbaros and Ricky. Uniting these strong, recognized brands will combine best practices and result in an acceleration of their current industry-leading growth.”
Evan Hershberg, a managing director at ONCAP, said, “During our ownership, David and Stephen did a fantastic job expanding on their world-class platform. We’re proud of what we accomplished together and we wish Mavis, Express and Golden Gate Capital continued success.”
Jefferies is serving as the exclusive financial adviser to Mavis and is leading the financing group, which includes Antares Capital, KKR Capital Markets, Angel Island Capital and Cowen. Ropes & Gray LLP and Nob Hill Law Group P.C. served as legal advisers to Golden Gate Capital and Express, and Covington & Burling LLP served as legal adviser to Mavis, the Sorbaro family and ONCAP.