ATLANTAAn Atlanta-based private equity group has acquired Driven Brands Inc., the franchisor of Mein-eke Car Care Centers, Merlin 200,000 Mile Shops and six other automotive service businesses, from Harvest Partners L.P.
Financial terms were not disclosed.
The buyer, Roark Capital Group, describes itself as a private equity firm focused on franchise and consumer brands, with 42 multi-unit brands generating annual system revenues of roughly $17 billion. Roark said it carried out the transaction through an undisclosed affiliate.
New York-based Harvest Partners became Driven Brands' primary stakeholder in December 2011, taking the position from Carousel Capital, which retained an undisclosed, modest stake as well.
This is an exciting day for Driven Brands and our family of franchisees, said Jonathan Fitzpatrick, Driven Brands' CEO, whom the new owners tabbed to continue leading the business.
Roark Capital brings us deep experience investing in growth consumer and franchise businesses, and their understanding of the importance of the franchisor-franchisee relationship makes them the right investment partner for all of our stakeholders.
In addition to Meineke and Merlin 200,000 Mile, Driven Brands' other franchises comprise: MAACO; Pro Oil Change; Econo Lube & Tune; AutoQual; Aero-Colours; and Drive N Style. Collectively, the brands generate annual system revenues of about $1 billion through 1,500 locations in 50 states and two countries, Roark Capital said.
Neal Aronson, managing partner of Roark Capital, said the company has great admiration for the franchisees who have made these iconic brands so successful, and are thrilled to contribute to their future growth.
Roark's holdings are heavily skewed to the fast food industry, where it controls Arby's; Carl Jr.'s; Corner Bakery; Hardee's; Miller's Ale House; Wingstop and FOCUS Brands, which owns Auntie Anne's Pretzels, Carvel Ice Cream, Cinnabon, McAlister's Deli, Moe's Southwest Grill, and Schlotzsky's.
Driven Brands is Roark's first venture into the automotive field. It will continue to be based in Charlotte, N.C.