Caliber Collision Centers Completes $20 Million Financing; BNY Capital Partners, L.P. and 1818 Mezzanine Fund, L.P. Sponsor Growth
23 August 2000
Caliber Collision Centers Completes $20 Million Financing; BNY Capital Partners, L.P. and 1818 Mezzanine Fund, L.P. Sponsor Growth
IRVINE, Calif.--Aug. 23, 2000--Caliber Collision Centers, an Irvine-based operator of high-quality collision repair centers in California and Texas, Wednesday announced that 1818 Mezzanine Fund, L.P. and BNY Capital Partners, L.P. have invested $20 million in a senior subordinated note to support Caliber's efforts to lead the consolidation of the fragmented collision repair industry throughout the West.The $20 million investment follows a $12.5 million investment made by BNY Capital Partners in June 1999. According to Matthew Ohrnstein, Caliber's CEO, this latest infusion of capital will facilitate ongoing corporate expansion.
"Caliber plans to continue growing throughout California, Texas and the Western U.S. by acquiring and building high-production, high-quality collision centers to meet the needs of the automobile insurance industry and vehicle owners," Ohrnstein said. "This latest investment by experienced investors is yet another validation of Caliber's strategic plan to develop a professionally managed, corporate provider of collision repair services with the ability to bring high quality performance to insurers and consumers."
On behalf of the investor group, Stratton Heath, Managing Director of BNY Capital Partners said, "The collision repair industry is experiencing a renaissance -- a shift from mom-and-pop businesses to sophisticated, corporate-owned service providers who provide collision repair and claims support over broad geographic markets.
"We have observed Caliber's execution since early 1999 and have been impressed by the management team's blend of operating expertise in both the collision repair and insurance industries and with the team's ability to manage growth. We are excited to be providing this follow-on investment in Caliber because they are delivering on their business plan and creating value for both the consumer and the insurer."
In 1997, Caliber Collision Center commenced its operations concurrently with the initial equity investment by Keystone Inc. (formerly The Robert M. Bass Group), an affiliate of Oak Hill Capital Partners, L.P., and Zurich Centre Investments Inc. Simultaneous with the close of that financing, Caliber acquired its first three collision repair centers in California. Since 1997, Caliber has acquired or developed 39 centers, and today has annual revenues exceeding $135 million.
About BNY Capital Partners, L.P.
BNY Capital Partners, L.P. is the private equity and mezzanine investment affiliate of The Bank of New York Company Inc. , one of the largest bank holding companies in the United States. With more than $76 billion in total assets as of June 30, 2000, the company provides a complete range of banking and other financial services to corporations and individuals worldwide through its basic businesses: Securities Servicing and Global Payment Services; Corporate Banking; BNY Asset Management and Private Client Services; Retail Banking; and Financial Market Services. BNY Capital Partners supports superior management teams with junior capital to finance growth, acquisitions, shareholder liquidity and recapitalizations. Additional information is available at http://www.bankofny.com.
About The 1818 Mezzanine Fund, L.P.
The 1818 Mezzanine Fund, L.P. is an affiliate of Brown Brothers Harriman & Co. Founded in 1818, Brown Brothers Harriman & Co. is the oldest and largest privately held bank in America. Brown Brothers Harriman & Co. provides a broad range of financial services including: commercial banking, currency consulting, securities brokerage and research, mergers & acquisitions, advisory services, private equity, foreign exchange, investment management and global custody. Through its 1818 Funds, Brown Brothers Harriman & Co. is a leading investor in negotiated, non-controlling equity and mezzanine investments in private and public companies with business values between $20 million and $1 billion. Additional information on Brown Brothers Harriman & Co. is available at http://www.bbh.com.
About Oak Hill Capital Partners, L.P.
Oak Hill Capital Partners, L.P., is a private equity partnership founded by Robert M. Bass and his team of investment professionals. Oak Hill Capital makes significant investments through acquisitions, build-ups, recapitalizations, restructurings, strategic joint ventures and the purchase of minority stakes across a wide range of industries. Investments to date include: Formation of MeriStar Investment Partners, L.P.; a significant minority stake in American Skiing Co.; a strategic investment in Cincinnati Bell Inc. (now Broadwing Inc.); the acquisition of Caribbean Restaurants Inc., the pending acquisition of GATX Logistics; and significant investments in newly formed Wide Open West Holdings, L.L.C., Financial Engines Inc. and Align Technologies.
About Zurich Centre Investments
Zurich Centre Investments Inc. (ZCI) is a member of the Zurich Financial Services Group. The Zurich Financial Services Group is a global leader in the financial services industry, providing its customers with solutions in the area of financial protection and asset accumulation. On Dec. 31, 1999, the group had $442 billion of assets under management of which $264 billion represent funds managed for third-party institutional and retail customers.
About Caliber Collision Centers
Caliber Collision Centers operates high-quality collision repair facilities in California and Texas. Caliber currently owns and operates 39 facilities and plans to continue acquiring, developing and integrating high-volume collision repair centers while providing innovative collision repair solutions and automobile physical damage claims support. Visit the Web site http://www.calibercollision.com for more information.