By Jeff Sanford
Brooklyn Park, Minnesota -- July 16, 2015 -- The consolidation of the North American collision repair sector takes another step forward. ABRA Auto Body & Glass closed a deal to acquire 23 collision centres across Idaho, Oregon and Washington.
The stores are part of the Kadel’s Auto Body chain. ABRA will add these centres to a chain of over 300 stores. Commenting on the takeover, President and Chief Executive Officer of ABRA, Duane Rouse, described the acquisition as significant.
“Over the past several years we have worked tirelessly to increase our national footprint and are all very proud of how far we’ve come. Growing to 310 repair centres is no easy feat," says Rouse. "We look forward to expanding the already extensive footprint and strong insurance partnerships that Kadel’s has established in the region.”
Don Braden, former President and CEO of Kadel’s, echoed Rouse’s sentiments. He said the company is honoured to be a part of ABRA’s growth.
“Our employees, our leadership, all of us at Kadel’s look forward to the great things to come as a result of our alignment with ABRA,” says Braden.
The deal is another chapter in the ongoing consolidation of the industry. Major private equity firms have been stepping in and buying up collision centres. Just last week major Quebec-based pension fund Le Caisse de depot et placement announced it was investing $8.5 million in Fix Auto.
In the case of the ABRA deal, Nomura arranged financing for the transaction. Harris Williams & Co. served as the exclusive financial advisor to Kadel’s.