Investor Group to Acquire Mavis Tire Express
Deal to Close During Second Quarter, Includes More Than 1,000 Stores
A group of investors led by BayPine LP - in partnership with TSG Consumer Partners LP and a holding company controlled by David and Stephen Sorbaro - have entered into an agreement to acquire Mavis Tire Express Services Corp. for an undisclosed amount. The deal is expected to close during the second quarter of 2021.
Golden Gate Capital, Mavis' current lead financial partner, will retain a minority interest in the company, which has more than 1,000 locations. (Mavis Tire is the second largest independent tire dealership chain in the U.S., according to MTD research.)
According to a statement issued on March 5, upon closing of the deal, David and Stephen Sorbaro will continue to serve as co-CEOs of the company, "supported by a deep and talented management team comprised of leaders from Mavis, Express Oil, Brakes Plus and Town Fair Tire, all adding significant industry operating expertise.
"Mavis has rapidly grown its platform through the successful completion of several strategic acquisitions in recent years, including the November 2020 merger with Town Fair Tire, a leading business in New England, which continues to operate as the same deep-rooted brand founded by the Mellen family." (The Town Fair acquisition gave Mavis an additional 100 locations, putting the dealership over the 1,000-store mark.)
"Since 2015, the Company has added approximately 1,000 service centers to its growing network of stores."
“Mavis is a clear leader in attractive markets across the country, with a proven track record of driving consistent growth through economic cycles,” says Anjan Mukherjee, managing partner at BayPine.
“By leveraging BayPine’s digital transformation and technology expertise, we believe there is a significant opportunity to enhance Mavis’ customer experience, capture operating efficiencies and bolster the company’s position as the go-to brand for auto care nationwide. We look forward to working closely with management as they continue to execute upon their successful consolidation strategy.”
David and Stephen Sorbaro stated, “We are excited to partner with BayPine and TSG, who bring significant financial, digital, and operational capabilities to our business. Importantly, our tradition of value-oriented service remains unwavering as we scale the Mavis platform.
"We will continue to work hard every day to earn the trust of our valued customers and enhance our product and service offerings to meet their evolving needs. We are grateful for Golden Gate Capital’s support over the past four years and are pleased they will remain investors.”
“Mavis has established itself as a leading national automotive services platform with a longstanding reputation for providing customers with exceptional service,” says Bill Cooling, managing director at TSG.
“We are thrilled to leverage our consumer expertise to support David, Stephen and the entire Mavis team as the company looks to capitalize on a number of exciting growth opportunities, including expanding its geographic footprint and increasing its digital capabilities,” notes Pierre LeComte, also a TSG managing director.
“Mavis represents the ideal business that we look to partner with, and we are eager to work alongside management, WFM and TSG to accelerate the company’s next phase of technology-enabled growth,” says Steve Ko, founding partner at BayPine.
“We are grateful for our successful partnership with David and Stephen Sorbaro and the dedication of the entire Mavis Express organization," says Josh Cohen, a managing director at Golden Gate Capital.
"Following the merger of Mavis Tire and Express Oil in 2018, the company has grown to become one of the largest independent tire and service provider platforms in the U.S., while maintaining its deep-rooted commitment to integrity, trust and high-quality customer service. With this strong foundation in place, we are confident BayPine and TSG will be excellent partners for the company’s next phase of growth."
The investor group also includes StepStone Group. Additionally, a group of financing partners led by Jefferies and Owl Rock Capital - and including Ares Capital Management and certain affiliates and funds managed by affiliates of Apollo Global Management, Inc.- is supporting the transaction.
Jefferies acted as sole financial advisor to Mavis. Covington & Burling LLP and Ropes & Gray LLP each served as legal advisor to Mavis, and to the Sorbaro family and Golden Gate Capital, respectively.
Kirkland & Ellis LLP and Ropes & Gray LLP are acting as legal counsel to the investor group.