CARSTAR, the largest franchisor of collision repair facilities with more than 380 shops in the United States and Canada, recapitalized May 29 through management and Champlain Capital Partners. Prior to its recapitalization, CARSTAR was a portfolio company of the Atlanta-based private equity firm Equity-South Advisors LLC. BB&T Capital Markets served as the financial advisor to CARSTAR. A vice president with BB&T Capital Markets characterized the financial deal as a natural progression for CARSTAR and Equity South. “Equity-South was a long-term financial partner of CARSTAR,” says Jonathan A. Carey, vice president of BB&T Capital Markets. “As often happens with financial sponsors it was simply time for Equity-South to move on. CARSTAR is doing great and Equity-South is still a big believer in the company, but it was time for them to pursue other opportunities.” “There is nothing to read into this decision,” Carey says. “It is simply the case of one financial investor moving along and another taking its place. Champlain Capital is excited about their new relationship with CARSTAR and we expect to continue to see great things from this growing company.” CARSTAR has approximately 270 franchise locations in the United States that generate more than $450 million in system-wide revenue. Another 114 locations operate in Canada under a separate master franchise agreement. The company was founded in 1989 and is headquartered in Overland Park, Kan. Champlain Capital Partners LP is a $140-million private equity fund that works with owners and management teams of middle-market companies. The company provides equity capital and financial, strategic, and operational expertise to assist owners and management teams in providing liquidity for shareholders, making strategic acquisitions, and financing major capital expenditures or growth programs. |
