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FeedService King seeks investment firm to fund expansion
April 18, 2012—Service King Collision Repair Centers is searching for a private investment firm to invest in the company to help fund a national expansion effort.
Jennifer Kirk, vice president of marketing for Service King, said company founder Eddie Lennox is spearheading the effort. Lennox decided that taking on a private investment partner was the best way to grow. He announced the growth strategy internally to the company’s 1,500 employees during a video speech April 17.
Service King has not yet identified the specific investment firm it will partner with, Kirk said. The company is working with wealth management firm BB&T, based in Winston-Salem, N.C., to help find the appropriate investment partner. A final decision is expected within the 2012 calendar year.
Kirk said Service King’s goal of partnering with an investment firm is to help the company establish additional shop locations throughout the U.S.—beyond the 47 facilities it already operates in Texas.
“We are not being sold or bought-out,” Kirk said. “Our goal is to become a national organization. We just want to grow beyond Texas, and become the largest and best-run collision center in the United States.”
Service King has not yet identified how many shop locations it will establish, which areas of the country it will focus on, or how much capital it needs to acquire, Kirk said. That information will not be confirmed until a specific investment partner is found, and terms of the partnership are established.
“The plans are to grow and become national. We have no ideas where the new shops will be located; it could be anywhere within the U.S.,” Kirk said. “That’s all we’ve identified at this point.”
Kirk said the growth initiative would not cause any changes to Service King’s business structure. Lennox intends to remain involved with the company, and no employee layoffs are expected, she said.
“This is strictly a growth strategy, and the result of a growth plan we’ve identified for 2012. The timing is right,” Kirk said. “It’s all good for the employees at Service King. It allows for more opportunity for everybody within the company to grow with us in the future.”
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Great a glorified Macco.... Just what this country needs. They work for the insurance company and get all of their work from steered vehicles. They need to stop acting like they have done something great in Texas.
Great news to hear. Service King is a premier body shop!
Looks like Lonerinder must work for the competition... I'd be saying the same thing if I felt threatened. I actually worked for service king and their employees are valued. I shouldn't have left.
I hope they come to my town! We need a great body shop here. The shops here are horrible. We have no benifits, pay could be better. Hopefully they can come here quickly since they are close by.
Tulsa,OK
Sounds good for the industry. They do a great job handling our account.
Well this might now be that bad.. I've been thinking about selling my shop and well I hope they come a knocking!
Atl, GA
I didn't know much about them but I just saw their website and I was left impressed... serviceking.com
They even have stuff on youtube.
This is fantastic news. I heard that the head hauncho(CEO) is a woman. She was on KERA...
You all should google her interview with KERA. Her name is Cathy Bonner.
Tiffany Brockman
Tampa Bay, Fl.
I'm excited I work for Service King and love the way we run things. I'm thrilled