Global alternative asset manager The Carlyle Group, together with management and employees of Service King Collision Repair Centers, announced they will acquire majority ownership of Service King.
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Founder Eddie Lennox will retain a significant ownership stake in the company. Chief Executive Officer Cathy Bonner will become chairman representing Lennox on the board of directors.
New equity for the investment will come from Carlyle Equity Opportunities Fund L.P. and Carlyle Strategic Partners Fund III L.P. Terms of the transaction, which is expected to close in August, were not disclosed.
Shary Moalemzadeh, Carlyle managing director and a member of the Carlyle Strategic Partners investment team, said, “We are pleased to partner with the Lennox family, management and employee-owners in further growing the business. Service King’s unparalleled commitment to its customers and focus on high quality service in the collision repair business attracted us to this investment.”
Adam Glucksman, Carlyle managing director and member of the Carlyle Equity Opportunities investment team, said, “In Service King and its team, we see the opportunity to help a proven operator break through to the next level of scale in a fragmented industry.”
“I am thrilled to have found a partner in The Carlyle Group who shares my vision for expanding our company nationally,” said Lennox. “We purposely sought out Carlyle based on its record of value creation. Carlyle will continue our commitment to employee ownership and providing customers with the highest level of quality and service in the industry.”
Established in 1976 and headquartered in Dallas, Service King operates 49 locations in the Dallas-Fort Worth, Houston, San Antonio and Austin metropolitan areas and has doubled its revenue and location count in the past three years. As it embarks on a national expansion, Service King in May announced its planned entry into the Arizona market by partnering with Auto Body World, which owns nine locations in the state.