Steve Leal, president and CEO of Fix Auto Canada, has announced the signing of a definitive agreement to acquire Prime CarCare Group, Canadian owner of automotive brands Speedy Auto Service, 5 Gears Auto Care, Minute Muffler and Brake, and the Canadian master franchisor for Novus Glass.
“This acquisition will create a unique opportunity for horizontal integration in the automotive repair sector,” said Leal. “Fix Auto became the number one consumer brand in collision repair through customer-driven focus, and we see great opportunity to further improve the customer experience by bringing together these leading automotive brands. This acquisition reinforces our commitment and support to the Canadian automotive aftermarket, and will benefit and expand offerings to support our existing partnerships.
“Fix Auto franchisees are among the most innovative and entrepreneurial in the business, and a significant portion of our glass and mechanical work is currently being sublet to third parties. This will create growth opportunities for all the franchisees in the system, and help deliver a more complete and consistent service offering to all our stakeholders.”
Prime CarCare Group currently operates 142 franchise locations in Canada under different brands, namely Speedy Auto Service, an iconic Canadian brand with a rich history that spans over 50 years of quality automotive service. The transaction is expected to close within 30 days, and while the terms are private, it is being partially funded by minority equity partner La Caisse de dépôt et placement du Québec.
“By reinvesting in FixAuto, la Caisse will enable the company to diversify its activities and pursue its Canada-wide growth strategy,” said Christian Dubé, executive vice president, Québec of Caisse de dépôt et placement du Québec.
Added David Lush, president and CEO of Prime CarCare Group Inc., “We see a great cultural and strategic fit with Fix Auto. Our vision of building a full product offering around the customer’s needs is now complete with the addition of collision repair, and we are thrilled to be joining Fix Auto’s extended family!”