CHARLOTTE, N.C. — Driven Brands Holdings Inc. could generate up to $760 million in new capital through its proposed initial public offering (IPO), according to details of the offer disclosed by the Charlotte-based auto services franchisor.
Driven Brands — whose franchise brands include Meineke Auto Care, Merlin's 200,000 Mile Shops and Take 5 Oil Change — plans to offer 38 million shares of common stock. The IPO price is expected to be between $17 and $20 per share.
The company at this time did not set an issuing date.
Driven Brands intends to use the proceeds from the offering and cash on hand to repay in full the outstanding indebtedness under certain credit facilities and to pay fees and expenses in connection with the offering.
The company intends to list its common stock on the Nasdaq Global Select Market under the ticker symbol "DRVN." The offering is subject to market conditions, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering.
Driven Brands also intends to grant the underwriters a 30-day option to purchase up to 5.7 million additional shares of common stock.
If the underwriters exercise their option to purchase additional shares, Driven Brands said it intends to use a portion of the net proceeds therefrom to acquire shares of common stock from certain of its existing stockholders.
Morgan Stanley & Co. L.L.C., BofA Securities and Goldman Sachs & Co. L.L.C. are acting as the joint lead book-running managers for the offering.
The offering will be made only by means of a prospectus which will be filed with the SEC and will be available on the SEC's website at sec.gov.
Driven Brands considers itself the largest automotive services company in North America with 4,185 locations in 49 U.S. states and 14 countries outside the U.S. Of the 4,185 outlets, Driven Brands owns 66 and lists 98 as "independently-operated" store locations.
The firm claims to have agreements to open more than 500 additional franchised units.
During the nine months ended Sept. 26, the company generated $616 million in revenue from $2.4 billion in systemwide sales, which equates to roughly 1% of the total automotive aftermarket maintenance business in the U.S. and 4% of the collision, paint and glass repair sector.