Caliber is a leading operator of auto collision repair centers in the United States.

www.calibercollision.com

Investment

C$71 million

Fund

ONCAP II

Period

October 2008 – November 2013

ONCAP Team

Evan Hershberg
Wole James
Stephen Marshall

Caliber Collision image

Transaction Summary

ONCAP acquired a majority interest in Caliber Collision Centers (“Caliber”) in October 2008.

Business Description

At the time of ONCAP's investment, Caliber was the largest non-franchised auto collision repair center operator in the U.S. with 129 collision centers located in California, Arizona, Nevada, Oklahoma, Colorado and Texas. Caliber mainly served insurance carriers such as AAA, USAA, State Farm, GEICO and Farmers Insurance through Direct Referral Programs (“DRPs”). Through DRPs, insurance carriers refer repair volumes to select collision centers in exchange for preferred pricing arrangements and superior customer service. Approximately 90% of Caliber’s revenue was generated from DRPs.

Accomplishment and Outcome

With a market-leading position in each of its core markets, ONCAP leveraged Caliber’s existing infrastructure and operating system to build a larger, more diversified collision repair business by: (i) gaining market share through insurance companies consolidating their businesses through DRPs; (ii) targeting new insurance customers; (iii) ongoing operational improvements; (iv) developing new units; (v) entering into referral and supplier relationships with car dealers that do not have collision repair facilities; and (vi) completing 38 add-on acquisitions.

In November 2013, a financial buyer purchased Caliber, generating a total of C$457 million of realized proceeds, which represents a 6.5x gross multiple of capital invested and a 44.5% gross IRR over the five-year investment period.