Harvest Partners

Driven Brands, Inc.

• COMPANY DESCRIPTION

  Driven Brands, Inc. (“Driven”) was a leading franchisor in the automotive aftermarket services industry and a national franchising platform in the United States. Driven’s flagship service brands included Meineke Car Care Centers (“Meineke”) and Maaco Collision Repair and Auto Painting (“Maaco”), two highly recognizable brands within the industry.

• Situation

  In 2011, Harvest acquired Driven through a broken auction. Harvest had identified the automotive aftermarket services industry as large, stable and growing, with significant consolidation opportunities. Prior to investing, Harvest conducted extensive due diligence, including site visits as well as consumer, franchisee, and brand assessments.

• Harvest Partners Investment

  In December 2011, Harvest purchased Driven. To fund the acquisition Harvest arranged the debt financing, which included senior credit facility and a mezzanine note. In addition, Harvest arranged equity co-investment capital for the transaction.

• Investment Thesis

  • Leading franchisor with highly recognizable brands
  • Large and growing industry
  • Stable business, with opportunities to accelerate growth through strategic initiatives
  • Strong cash flow characteristics

• Value Creation

  • Appointed a new management team and independent board members with significant franchise experience
  • Repositioned the business for growth by accelerating new store development and increasing store count by over 100
  • Closed nine add-on acquisitions and refranchising transactions
  • Implemented key strategic initiatives including the implementation of a fleet sales program and the introduction of new franchisee revenue streams such as tires

• Outcome

  • Sold to Roark Capital Group in April 2015