Conning Capital Partners Announces Sale of Sterling Collision Centers to Allstate Corporation

    HARTFORD, Conn.--May 8, 2001--Conning Capital Partners, the Hartford-based private equity group, announced the sale of Sterling Collision Centers, Inc. to Allstate Corporation (Allstate).
    Financial terms were not disclosed.
    Sterling operates a network of 39 collision repair stores in seven states and nine metropolitan areas. In addition to its multi-state operation, Sterling has re-engineered the auto collision repair process resulting in improved costs to insurers and faster turnaround and enhanced customer satisfaction.
    Sterling was founded in late 1997 by management and Conning Capital Partners and has been backed during its ensuing development by Conning and Berkshire Partners LLC.
    "We teamed up with the premier management in the industry in 1997 to begin building Sterling and changing the paradigm of collision repair," said Steven F. Piaker, a partner with Conning Capital Partners. "In just three years, Sterling has successfully broadened the management team, built significant relationships with leading auto insurers and scaled operations across seven states and nine metropolitan areas with over $100 million of run-rate revenues."
    The auto collision repair market is estimated in excess of $25 billion in annual revenues and is funded primarily through insurance company payments. Yet the market is highly fragmented, process-heavy and low tech, largely served by sole-proprietor shops. Moreover, until recently, these shops had little coordination with auto insurers. A research study from Conning & Company, "The Managed Auto Repair Initiative" has suggested that to prosper in the auto insurance business, underwriters need to find ways to control quality and reduce costs in auto collision repair. Sterling has been one of the leaders in this movement.
    "We are very excited about this new relationship," said Sterling CEO Jonathan McNeill. "Allstate will be a terrific partner. They share our vision of expanding our model to other markets and are equally committed to customer satisfaction. Like Sterling, they understand that it is good business to reduce repair times and improve the facilities' efficiencies while delivering superior customer service."
    Summed up Piaker, "Not only are we delighted with the financial return, but we are especially pleased with taking the company to the next level of re-engineering this sector of the insurance industry."

    About Conning Capital Partners

    Conning Capital Partners, a unit of Conning & Company, (Member: NASD/SIPC), is a prominent investor in financial services and e-commerce firms. Headquartered in Hartford, Connecticut, Conning Capital Partners has close to $600 million under management invested in a wide variety of financial services and technology companies, including software, brokerage, banking, insurance and managed care companies. For more information on Conning Capital Partners, please contact John Clinton at 860-520-1238 or Steve Piaker at 860-520-1210.

    About Berkshire Partners LLC

    Berkshire Partners is an active investor in the private equity market managing $1.8 billion of capital. Through its 15-year investment history, Berkshire has completed 70 acquisitions or growth capital investments with a primary focus on building solid, growth-oriented companies in conjunction with strong, equity-incented management teams. Berkshire invests in a number of industries including transportation, telecommunications, retailing, business services, and manufacturing. Its private equity transactions have taken several forms; leveraged buyouts, recapitalizations, growth capital investments, privatizations, and industry consolidations. Investors consist primarily of university endowments, public and private pension funds, insurance companies, foundations, and financial institutions.