Crash Champions Absorbs Service King with New Investment
July 14, 2022—Crash Champions announced that it will acquire Service King Collision with the help of a strategic investment from Clearlake Capital Group.
Announced on July 14, the deal gives Crash Champions a total network of 550 locations across 35 states and the District of Columbia, according to a press release. The total company workforce will be more than 9,200. All locations will operate under the Crash Champions name.
“Today is an exciting day for Crash Champions and another major milestone in our growth story,” said Matt Ebert, founder and CEO of Crash Champions, in the release. “This strategic combination further enhances our ability to serve our customers and insurance partners while creating advancement opportunities for our team members across both organizations.”
The investment from Clearlake is described as growth capital and marks the investment firm's second transaction in the collision repair industry, the release says. Clearlake was a main partner in Service King's prior debt recapitalization. Going forward, Crash Champions will oversee and manage the acquired network of shops.
In the press release, José E. Feliciano, Co-Founder and Managing Partner, and Colin Leonard, Partner of Clearlake, offered the following statement:
“This investment was driven by our thematic-based approach to investing in the automotive aftermarket and our specific identification of the collision repair sector as an ecosystem at a historical inflection point. The proliferation of vehicle technology has put unique demands on the shop operators to invest in OEM certifications, equipment, and most importantly their personnel to deliver safe and efficient service. We are impressed by Matt and the Crash Champions leadership team and admire their commitment to customer service and re-investment in both their operations and talent. It is exciting to partner with them to create this differentiated national platform, and we look forward to utilizing our O.P.S. framework to unlock the inherent value of this combination and position the platform for continued strong growth."
Prior to the deal, the Crash Champions network extended to 20 states with more than 200 locations. The press release noted that no operational disruptions are expected. More details of the transaction were not disclosed.