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Driven Brands Adds CARSTAR Canada

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Dec. 2, 2015—Driven Brands Inc. announced Wednesday that it has acquired CARSTAR Canada, Canada’s leading collision and glass company.  

CARSTAR is one of the largest multi-store networks of independently owned collision and glass centers in Canada, operating more than 230 locations in 10 provinces.  

“As we continue to accelerate our exposure and growth throughout North America, Driven Brands remains committed to maintaining a portfolio of brands that our customers associate with quality,” said Jonathan Fitzpatrick, president and chief executive officer of Driven Brands. “CARSTAR has a long and established history in Canada and I’m proud to have this iconic brand join the Driven Brands family. CARSTAR not only strengthens our product offering and expertise, but builds upon our established footprint in Canada.”

This development follows Driven Brands’ recent acquisition of CARSTAR’s U.S. operations. The combined CARSTAR business accounts for more than 450 locations and $700 million of annual system sales. This makes CARSTAR the largest brand in both system sales and locations in the automotive collision repair industry.

CARSTAR Canada marks the third acquisition for Driven Brands since it was acquired by Roark Capital earlier this year, expanding the brands’ footprint to more than 2,200 franchise locations in the U.S. and Canada. Adding CARSTAR Canada to the Driven Brands portfolio is part of the company’s overall strategy to grow through acquisitions. 

This newest addition strengthens the company’s position as a North American powerhouse in the automotive aftermarket franchising industry.

“CARSTAR Canada and our customers will benefit from Driven Brands’ and Roark Capital’s best in class executive teams and their extensive franchising expertise across a number of industries including automotive and retail services,” said Sam Mercanti, CEO of CARSTAR Canada. “This is an ideal opportunity to leverage our combined franchise networks and improve operational efficiencies while enhancing the customer experience.”

CARSTAR Canada will be part of Driven Brands’ recently created Paint and Collision business segment, comprised of Maaco, CARSTAR U.S., and Drive N Style, led by Jose Costa, group president at Driven Brands. 

Costa told the media in a conference call earlier this week to expect a large acquisition

The Canadian headquarters will remain at the current location in Hamilton and the operation of the business will remain under the current management. Michael Macaluso will continue to lead CARSTAR Canada in his role as president and Sam Mercanti will assume the role of chairman of CARSTAR Canada.

Macaluso, president of CARSTAR Canada added: “This is a very positive development for CARSTAR Canada, our customers and our partners. Joining the Driven Brands family will bring new capital resources to CARSTAR, allowing us to strengthen and grow for the future. This joining of forces demonstrates both of our organization’s drive to be humble and hungry.”

“I’m very excited to have CARSTAR Canada join Driven’s Paint & Collision business segment,” said Costa of Driven Brands. “CARSTAR Canada adds depth to our already impressive service offering and further establishes Driven Brands as a company that can provide all automotive services to our customers across North America.”

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