Driven Brands Expands Auto Glass Offering into the U.S.

Rhea-AI Summary

Driven Brands Holdings (NASDAQ: DRVN) has expanded its auto glass services in the U.S. by acquiring Auto Glass Now (AGN) for approximately $170 million. AGN, an established player with over 75 locations, reported 2021 revenues of around $85 million with EBITDA margins of 25%. This strategic move taps into the growing $5 billion auto glass repair market, reflecting Driven Brands' commitment to evolving automotive services. The acquisition is expected to enhance market share and operational efficiency within the Paint, Collision, and Glass segment.

Positive

• Acquisition of Auto Glass Now enhances Driven Brands' position in the $5 billion U.S. auto glass repair market.
• AGN's revenue for fiscal 2021 projected at approximately $85 million with robust EBITDA margins of 25%.
• Expansion adds over 75 company-operated locations to Driven Brands' network.

Negative

• Transaction incurred a $56 million expense in Q4 fiscal 2021.
• Acquisition was funded with cash on hand, impacting liquidity.

CHARLOTTE, N.C., Jan. 04, 2022 (GLOBE NEWSWIRE) -- Driven Brands Holdings Inc. (NASDAQ: DRVN), North America’s largest automotive services company, announces the expansion of its auto glass offering into the U.S. with the acquisition of Auto Glass Now^® (AGN).

AGN is an industry leader, backed by over 20 years of experience, in auto glass repair, replacement, and calibration with over 75 locations throughout the U.S.

The total addressable market for auto glass repair in North America is approximately $5 billion and growing. This acquisition makes Driven Brands one of the largest auto glass service providers in North America.

"The automotive aftermarket is evolving, and we are incredibly bullish that glass services will be a key beneficiary of that evolution,” said Jonathan Fitzpatrick, president and CEO, Driven Brands. “The growth and highly fragmented nature of auto glass services makes our entrance into the U.S. market an ideal strategic investment for Driven Brands.”

AGN will be reported in Driven Brands’ Paint, Collision, and Glass segment, adding over 75 company-operated locations. Fiscal 2021 revenue for AGN is expected to be approximately $85 million, and the business generates EBITDA margins of approximately 25%.  

“Glass repairs are growing as a percentage of auto repairs and repair complexity is increasing due to the necessary calibration,” said Michael Macaluso, EVP of Driven Brands and Group President, Paint, Collision, and Glass. “Glass presents another exciting opportunity to leverage our proven playbook of consistent and repeatable growth to continue capturing market share.”

Driven Brands first entered the glass business in Canada in 2019, and serves retail, insurance, and fleet customers. Driven Brands now operates over 300 glass locations in both the United States and Canada.

Driven Brands acquired AGN for approximately $170 million on December 30, 2021. As part of the transaction, the company incurred a $56 million transaction expense in the fourth quarter of fiscal 2021. The purchase price and transaction expense were funded with cash on hand.

About Driven Brands
Driven Brands™, headquartered in Charlotte, NC, is the largest automotive services company in North America, providing a range of consumer and commercial automotive needs, including paint, collision, glass, vehicle repair, oil change, maintenance and car wash. Driven Brands is the parent company of some of North America’s leading automotive service businesses including Take 5 Oil Change^®, Meineke Car Care Centers^®, Maaco^®, 1-800-Radiator & A/C^®, and CARSTAR^®. Driven Brands has more than 4,300 locations across 15 countries, and services over 50 million vehicles annually. Driven Brands’ network generates more than $1 billion in revenue from more than $4 billion in system-wide sales. For more information on the power of Driven Brands, visit DrivenBrands.com.

Contacts

Shareholder/Analyst inquiries:
Rachel Webb
rachel.webb@drivenbrands.com
(704) 644-8125

Media inquiries:
Taylor Blanchard
Taylor.blanchard@drivenbrands.com
(704) 644-8129

 

FAQ

What is the significance of Driven Brands acquiring Auto Glass Now?

The acquisition positions Driven Brands as a major player in the $5 billion U.S. auto glass repair market, enhancing its service offerings.

How much did Driven Brands pay for Auto Glass Now?

Driven Brands acquired Auto Glass Now for approximately $170 million.

What were the revenue projections for Auto Glass Now in 2021?

Auto Glass Now's revenue for fiscal 2021 is projected to be around $85 million.

What are the EBITDA margins for Auto Glass Now?

Auto Glass Now is expected to generate EBITDA margins of about 25%.

How many locations does Auto Glass Now have?

Auto Glass Now operates over 75 locations across the United States.