Secondary Buyout • Franchising

Ares Private Equity Group Acquires Meineke

On June 15, 2005, private equity firm Ares Private Equity Group acquired franchising company Meineke from Arrowhead Investment Management, Halifax Group and Carousel Capital

Acquisition Context
  • This is Ares Private Equity Group’s 1st transaction in the Franchising sector.
  • This is Ares Private Equity Group’s 8th transaction in the United States.
  • This is Ares Private Equity Group’s 1st transaction in North Carolina.
Investment Fate
  • Meineke was sold to a strategic buyer in 2015.

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M&A Deal Summary

Date June 15, 2005
Target Meineke
Sector Franchising
Buyer(s) Ares Private Equity Group
Sellers(s) Arrowhead Investment Management
Halifax Group
Carousel Capital
Deal Type Secondary Buyout

Target Company

Meineke

Charlotte, North Carolina, United States
Meineke is a franchise-based international automotive repair chain with over 750 locations and a 50-year history of delivering consistent and high-quality repair and preventative maintenance services. Meineke CARSTAR is based in Charlotte, North Carolina.
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Buyer Overview 1

Buyer

Ares Private Equity Group

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2003
PE ASSETS 24.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Ares Private Equity Group is the private equity arm of Ares Management, a global alternative asset manager. The Ares Private Equity Group specializes in opportunistic majority/shared control investments in under-capitalized middle-market companies. Ares looks for companies with strong franchises and attractive growth opportunities. The Group prefers to be the lead investor and will invest across the capital structure, including common equity, preferred equity, convertible equity/debt and senior debt. Areas of interest include business services, defense, healthcare, manufacturing, industrial, energy and consumer products and services. Ares Private Equity Group was formed in 2003 and is based in Los Angeles, California.


Deal Context for Buyer #
Overall 10 of 126
Sector: Franchising 1 of 1
Type: Secondary Buyout 1 of 46
State: North Carolina 1 of 6
Country: United States 8 of 93
Year: 2005 2 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-03-16 Ameriqual Group

Evansville, Indiana, United States

AmeriQual Group is a food processing company that specializes in the development, processing, packaging, and distribution of high-quality shelf-stable foods. Ameriqual provides innovative solutions to major branded food companies, food service providers, retailers, and the United States Department of Defense. Ameriqual Group was founded in 1987 and is based in Evansville, Indiana.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-08 Palm Coast Data

Palm Coast, Florida, United States

Palm Coast Data LLC is a fulfillment and response management company focused primarily on the magazine publishing industry. Services provided to customers included front end processing, customer service, direct mail services, letter shop services, and online communications. Palm Coast Data LLC was founded in 1984 and is based in Palm Coast, Florida.

Buy -

Seller Profiles 3

SELLER

Arrowhead Investment Management

Greenwich, Connecticut, United States

Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1996
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Arrowhead Investment Management is a provider of subordinated debt, preferred stock and non-control common equity to mid-sized businesses. Arrowhead invests alongside private equity sponsors in acquisitions, buyouts, recapitalizations and growth capital transactions. Arrowhead is a generalist investor, however the Firm tends to focus on healthcare, packaging, chemicals, consumer products, industrial manufacturing, value-added distribution and business services. Arrowhead looks to commit $10 to $100 million in transactions valued up to $500 million. Arrowhead Investment Management was formed in 1996 and is based in Greenwich, Connecticut.


Deal Context for Seller #
Overall 6 of 24
Sector: Franchising 1 of 2
Type: Secondary Buyout 2 of 14
State: North Carolina 1 of 4
Country: United States 6 of 24
Year: 2005 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-25 Kurt Versen Co.

Westwood, New Jersey, United States

Kurt Versen Co. is a designer and manufacturer of high end specification-oriented, recessed downlighting for commercial applications. Kurt Versen Co. was formed in 1920 and is based in Westwood, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-10 Bare Escentuals Beauty

San Francisco, California, United States

Bare Escentuals Beauty, Inc. is a developer and multi-channel marketer of cosmetics, skin care and body care products. Bare Escentuals Beauty was formed in 1999 and is based in San Francisco, California.

Sell $480M
SELLER

Halifax Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

The Halifax Group is a private equity firm focused on investing in established, profitable, and growing companies. The Firm prefers completing transactions in partnership with management and typically looks to invest $40 to $80 million per acquisition. Prospective companies generally have revenues of at least $20 million and EBITDA greater than $8 million. Sectors of interest include business services, healthcare services, infrastructure services, and 'wellness' products and services. Halifax prefers opportunities located in North America. The Halifax Group was formed in 1999 and is based in Washington, DC, with additional offices in Dallas, Texas and Raleigh, North Carolina.


Deal Context for Seller #
Overall 2 of 24
Sector: Franchising 1 of 1
Type: Secondary Buyout 1 of 14
State: North Carolina 1 of 1
Country: United States 1 of 20
Year: 2005 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-03-01 Preferred Homecare

Phoenix, Arizona, United States

Founders Healthcare LLC provides home healthcare products and services in the Southwest. The company offers respiratory, home infusion, and home medical equipment therapies and services through its branch offices and service centers. Founders Healthcare was formed in 1997 and is based in Phoenix, Arizona.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-05 Polypipe Group

Doncaster, United Kingdom

Polypipe Group is a manufactures and sells pressure-rated high density polyethylene pipes. The company's products are used in natural gas distribution, oil and gas gathering, municipal water and waste water, industrial and mining, nuclear power, landfill, and irrigation markets. Polypipe Group was founded in 1980 and is based in Doncaster, the United Kingdom.

Buy £293M
SELLER

Carousel Capital

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1996
PE ASSETS 1.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Carousel Capital is a private investment group that invests in companies headquartered in the Southeast US. The Firm targets leveraged buyouts and recapitalizations of businesses in consumer products/services, business services, and healthcare services. Carousel will consider both the majority and minority situations. Prospective companies are generally valued up to $250 million and have at least $3 million of EBITDA. Carousel Capital was formed in 1996 and is based in Charlotte, North Carolina.


Deal Context for Seller #
Overall 1 of 21
Sector: Franchising 1 of 2
Type: Secondary Buyout 1 of 14
State: North Carolina 1 of 8
Country: United States 1 of 21
Year: 2005 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-04-11 Express Oil Change & Tire Engineers

Birmingham, Alabama, United States

Express Oil Change & Tire Engineers is a provider of total car care solutions, oil change, maintenance and repair services. Express Oil Change & Tire Engineers was founded in 1979 and is based in Birmingham, Alabama.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-03 Nestor Sales

Largo, Florida, United States

Nestor Sales is a wholesaler and distributor of tools, equipment and supplies to the transportation industry.

Buy -