ABRA Auto Body & Glass, and its principal owner Palladium Equity Partners, have agreed to sell the company to affiliates of Hellman & Friedman LLC and ABRA’s senior management team. In late June, ABRA announced it was in the market for a new private equity owner.
“It is a good time to capitalize,” says Duane Rouse, ABRA’s president and CEO. And the company’s management sees automotive glass repair and replacement services playing a big role in the company’s ongoing expansion.
“We’ve been private-equity owned since 1997 and we’re good at it. This will not be disruptive to business,” he adds.
This will be the fifth time the company has sought out new private equity ownership.
“Hellman & Friedman brings deep insurance and automotive service industry expertise and an exemplary record of helping companies such as ABRA continue to evolve and grow. We look forward to working together to build on our track record of success,” says Rouse.
The transaction is expected to close in the third quarter of 2014 and is subject to customary conditions. The terms of the deal were not disclosed.
“Within the $30 billion collision repair sector ABRA stands out as a highly-respected, exceptionally well-run business,” says Erik Ragatz, managing director of Hellman & Friedman. “Built on a foundation of delivering superior standards for repair quality and customer service, ABRA has become a trusted partner of leading automotive insurers and a reliable source for quality collision repair services across the nation. We see outstanding growth prospects ahead and look forward to partnering with ABRA’s team to continue to execute on their strategic plan.”
“We are proud to have been a part of ABRA’s successful growth over the past three years,” says Luis Zaldivar, managing director of Palladium. “During our partnership, we worked closely with ABRA’s exceptional management team to enter new markets, accelerate the company’s acquisition program and enhance the company’s industry-leading capabilities. We are confident Hellman & Friedman will be an ideal partner in the next stage of the company’s development.”
“Hellman & Friedman focuses on investing in businesses with strong, defensible franchises and predictable revenue and earnings growth and which generate high levels of free cash flow or attractive returns on the capital reinvested in the business,” according to the company’s site. “We generally invest in businesses with strong operating management teams already in place; however, if needed, we have experience in attracting new managers to supplement or replace existing teams.”
“[O]ur target investment size is $300 million – $1 billion of our equity. We principally invest in developed markets including the United States and Europe,” according to the website.