An investor group led by BayPine, in partnership with TSG Consumer Partners (TSG) and existing significant equity-holder West First Management (WFM), is to acquire Mavis Tire Express Services Corp (Mavis), one of the largest independent automotive service platforms in the United States.
Golden Gate Capital, Mavis’ current lead financial partner, will retain a minority interest in the Company.
Upon closing, David and Stephen Sorbaro will continue to serve as Co-Chief Executive Officers of the Company, supported by a management team comprised of leaders from Mavis, Express Oil, Brakes Plus and Town Fair Tire, all adding significant industry operating expertise.
Founded in 1972 by the Sorbaro family, and with roots dating back to 1949, Mavis is a leading independent tire dealer and automotive aftermarket service provider with more than 1,100 service centres primarily in the Northeast, Midwest and Southern United States. The Company’s repair and maintenance products and services include tires, brakes, alignments, suspension, shocks, struts, oil changes, battery replacement and exhaust work, among other offerings. 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. Since 2015, the Company has added approximately 1,000 service centres 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.”
Messrs Sorbaro say: “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 capitalise on a number of exciting growth opportunities, including expanding its geographic footprint and increasing its digital capabilities,” added Pierre LeComte, Managing Director at TSG.
“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 have known and respected David and Stephen for many years and we look forward to maintaining the ideals and foundation on which this iconic family business was built. Together, we will endeavour to establish a true digital presence for the business and further Mavis’ reputation for offering high-quality, low-cost services to its deeply loyal customer base,” said Tom O’Rourke, Managing Director at BayPine.
Josh Cohen, a Managing Director at Golden Gate Capital, says: “We are grateful for our successful partnership with David and Stephen Sorbaro and the dedication of the entire Mavis Express organisation. 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. We feel privileged for the opportunity to be part of the Mavis story and are excited to support the Company’s continued success as a minority shareholder.”
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.
Terms of the transaction, which is expected to close in the second quarter of 2021, were not disclosed.
