Driven Brands Revs Up With CARSTAR Acquisition

Roark Capital Portfolio Company Driven Brands Acquires CARSTAR

SPONSOREDUpdated 12:00AM • 11/03/15

Roark Capital’s portfolio company, Driven Brands, just announced their acquisition of CARSTAR, a prominent automotive collision repair franchise. This comes on the heels of Roark Capital acquiring Driven Brands in April of 2015 as they continue to make waves in the automotive franchise space.

"We will benefit from Driven Brands and the Roark Capital team's extensive franchising knowledge across a number of retail categories including automotive, retail services and restaurants," said David Byers, chief executive officer of CARSTAR Auto Body Repair Experts in a recent press release issued by Driven Brands. "And, there are many opportunities for improving operational efficiencies, customer engagement and national branding as part of their portfolio. This move also will bring new capital resources to CARSTAR to continue to drive our growth."

Scott Sutton, vice president of Safeguard and an expert on franchise acquisitions, weighed in on the move by Roark Capital.

“From a strategic perspective, the deal certainly aligns with Driven Brands’ automotive service orientation,” said Sutton. “One of their foundational brands, MAACO Collison Repair & Auto Painting, operates within the same segment as CARSTAR, so the deal certainly increases Driven’s market share while driving down competitive pressure. As with any acquisition, the real value in this transaction will likely be determined based on how the business transitions into a new company culture and strategic vision.”

Sutton believes that combining CARSTAR’s network of 240 locations, which spans across 30 states, with MAACO’s impressive reach will spark a shift in the automotive repair franchise landscape over the next few years to come.