Driven Brands Holdings Inc.'s Board of Directors has unanimously rejected ADW Capital Management, LLC’s (“ADW Capital”) acquisition proposal, according to a news release. Driven Brands, which owns Abra Auto Body Repair of America, CARSTAR, and Fix Auto USA, said the proposal was non-binding, highly conditional, and unsolicited for $18.00 per share in cash. 

The company said that, consistent with its fiduciary duties and in consultation with its financial and legal advisors, the Board carefully reviewed and evaluated ADW Capital’s proposal. Following its review, the Driven Brands Board unanimously determined that ADW Capital’s proposal is highly conditional and does not provide a credible basis on which the Company could proceed. Additionally, the Board concluded that ADW Capital’s proposal significantly undervalues the Company in light of its long-term value creation opportunities and is not in the best interest of Driven Brands and its shareholders. 

Driven Brands said the Board of Directors and leadership team remain confident in the Company’s strategy, long-term value creation opportunities and disciplined execution. The Board remains committed to acting in the best interests of all shareholders and to evaluating opportunities to maximize shareholder value. 

ADW Capital, which currently holds a 3.7% stake in Driven Brands, submitted its offer in May. Private equity firm Roark Capital is the current majority owner of Driven Brands.