We now know how Dallas-based Service King Collision Repair Centers is going to expand its business nationally. As you may recall, back in May, the company announced plans to branch out of Texas via the acquisition of Auto Body World, which has nine locations in Arizona. Now, Service King has the means to grow nationally.
The Carlyle private equity group — in partnership with the Lennox family, management and employees of Service King — is acquiring majority ownership of the company. Founder Eddie Lennox will retain a “significant ownership stake” in Service King, and CEO Cathy Bonner will become chairman, representing Lennox on the board of directors.
Terms of the transaction, which is expected to close this month, were not disclosed.
Carlyle’s plans for Service King are obvious. In a statement announcing the pending acquisition, Carlyle managing director Shary Moalemzadeh talks about “further growing the business.” Adam Glucksman, another Carlyle managing director, said “we see the opportunity to help a proven operator break through to the next level of scale in a fragmented industry.”
Additionally, Lennox is quoted as saying: “I am thrilled to have found a partner in The Carlyle Group who shares my vision for expanding our company nationally.”
Established in 1976, Service King operates 49 shops in the Dallas-Fort Worth, Houston, San Antonio and Austin metropolitan areas. The company is billed as “the largest independent U.S. chain of auto body repair shops.”