CHARLOTTE, N.C. — Driven Brands Holdings Inc. has acquired Auto Glass Now (AGN), expanding its auto glass offerings into the U.S.
AGN has more than 20 years of experience in auto glass repair, replacement and calibration and more than 75 locations throughout the U.S. With this acquisition, Driven Brands will become one of the largest auto glass providers in North America.
Driven Brands purchased AGN for about $170 million on Dec. 30, 2021. As part of the deal, the company incurred a $56 million transaction expense in the fourth quarter of 2021. The purchase price and transaction expense were funded with cash on hand.
AGN will add about 75 company-operated locations to Driven Brands' paint, collision and glass segments. AGN is expected to have fiscal year 2021 revenue of approximately $85 million and the business generates EBITDA margins of approximately 25%, according to Driven Brands.
"The automotive aftermarket is evolving, and we are incredibly bullish that glass services will be a key beneficiary of that evolution," Driven Brands President and CEO Jonathan Fitzpatrick said. "The growth and highly fragmented nature of auto glass services makes our entrance into the U.S. market an ideal strategic investment for Driven Brands."
The total addressable market for auto glass repair in North America is approximately $5 billion and growing, according to Driven Brands.
"Glass repairs are growing as a percentage of auto repairs and repair complexity is increasing due to the necessary calibration," said Michael Macaluso, executive vice president of Driven Brands and group president, paint, collision and glass. "Glass presents another exciting opportunity to leverage our proven playbook of consistent and repeatable growth to continue capturing market share."
Driven Brands first entered the North American glass market in Canada in 2019 and serves retail, insurance and fleet customers. Driven Brands now operates more than 300 auto glass locations in the U.S. and Canada.
Driven Brands is the largest automotive services company in North America, offering a range of services, and is the parent company of several automotive services businesses including Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C, and CARSTAR.
