BB&T Capital Markets Advises 1-800 Radiator & A/C in its Sale to Driven Brands
BB&T Capital Markets served as the exclusive financial advisor to 1-800 Radiator and A/C, the largest franchised automotive parts distributor in North America, in its sale to Driven Brands, a leader in automotive service franchising and the parent company of such leading franchise brands as MAACO® and Meineke Car Care Centers®. Driven Brands is a portfolio company of Roark Capital Group.
“1-800 Radiator and A/C is a truly innovative platform in the automotive aftermarket,” said Rex Green, managing director in BB&T Capital Markets Automotive Aftermarket Group and head of Retail & Consumer investment banking. “The Company has transformed the aftermarket temperature control supply chain and as part of the Driven Brands family, we would expect it to continue to apply its advanced technology and business processes to other aftermarket products and services.”
“Having known the Company and its management team for a number of years and witnessed its growth into a national distribution platform first-hand, we are looking forward to watching its next phase of growth as part of Driven Brands,” added Jonathan Carey, managing director and head of BB&T Capital Markets’ Automotive Aftermarket Group.
The terms of the transaction are undisclosed.
About the Companies
1-800 Radiator & A/C is the largest independent parts distributor in the nation selling more than 1,000,000 radiators every year with more than 200 locations. 1-800 Radiator & A/C has the largest inventory of radiators, condensers, air conditioning parts, fan assemblies, fuel pumps and related parts. The 1-800 Radiator & A/C business model provides retail and wholesale customers with cooling parts delivered to their doorstep in a matter of hours at competitive pricing. To its franchisees, 1-800 Radiator & A/C provides huge buying power, state-of-the-art software technology, along with 24-7 support.
The Driven Brands family of automotive companies, headquartered in Charlotte, NC, serves as parent company for several businesses including: MAACO®, Meineke Car Care Centers®, Merlin 200,000 Mile Shops®, Econo Lube & Tune, Pro Oil®, AutoQual®, Aero-Colours® and Drive N Style®. Founded in 1972, MAACO and Meineke Car Care Centers are two of the most iconic brands in the automotive industry and have become a staple in American culture. Driven Brands has more than 1,500 centers across the U.S. and Canada, which are 100 percent owned by franchisees. Combined, all businesses generate over $1 billion in system sales.
Roark focuses on consumer and business service companies with a specialization in franchised and multi-unit business models in the retail, restaurant, consumer and business services sectors. Since inception, Roark has acquired 42 franchise/multi-unit brands, which have generated $17 billion in annual system revenues from 20,000 locations in 50 states and 72 countries. Roark’s current brands include Anytime Fitness, Arby’s, Atkins Nutritionals, Batteries Plus Bulbs, Carl Jr.’s, Corner Bakery, FOCUS Brands (the owner of Auntie Anne’s Pretzels, Carvel Ice Cream, Cinnabon, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s), Hardee’s, Il Fornaio, Massage Envy, Miller’s Ale House, Money Mailer, Pet Valu, Pet Supermarket, Primrose Schools, Waxing the City, and Wingstop.
BB&T Capital Markets is the leading investment bank to the automotive aftermarket. We provide unparalleled industry expertise and transaction execution throughout the entire aftermarket channel - from suppliers and distributors to retailers and professional installers - in every segment of the $300 billion industry.
About BB&T Capital Markets
BB&T Capital Markets offers an integrated platform of equity and debt underwriting, M&A advisory, corporate banking, and sales and trading. Headquartered in Richmond, VA, with offices throughout the US, we have specific expertise within 10 distinct industry verticals including Automotive Aftermarket; Commercial & Industrial; Education; Energy; Financial Services; Food & Agribusiness; Healthcare; Logistics & Transportation Services; Real Estate; and Retail & Consumer. Our commitment to industry expertise, combined with our resources as one of the nation's strongest financial institutions, strategically positions BB&T Capital Markets to build lasting relationships and contribute measurably to the long-term success of our clients.