Penfund invests $150mn in Caliber Collision Centers on eve of $2.2bn merger

Toronto-based junior capital provider Penfund announced today that it has completed a US$150mn investment in Caliber Collision Centers. Penfund joins a select group of investors contributing a collective $600mn to Caliber, the largest collision repair shop operator in the United States, which currently owns and operates 655 collision repair centers across 19 states.

Caliber Collision Centers employs approximately 13,000 people and completes over 800,000 repairs annually. The company will use the funding from Penfund, along with the proceeds of a US$1.85 billion first lien term loan and US$300 million revolving credit facility, to finance its merger with ABRA Auto Body Repair of America.

ABRA Auto Body Repair is a leading vehicle repair platform in the United States with comprehensive collision and glass repair and replacement services. Founded in 1984, ABRA currently operates 407 collision repair facilities (348 corporate, 59 franchised) across 28 states. The company has roughly 6,000 employees and completes over 400,000 repairs annually.

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The merger, which is world approximately $2.2bn, will create the the largest automotive collision repair chain in the United States with over 1,000 locations and a national footprint. Both companies have similar operating philosophies and deliver industry leading performance to insurance carrier partners. The combination is expected to create new opportunities for value creation for all stakeholders.

Jeremy Thompson, a partner of Penfund, stated “Penfund is excited to support the merger of these two best-in-class businesses and looks forward to continuing its long relationship with the Caliber team.” Mr. Thompson noted that Penfund has now provided financing to Caliber on four separate occasions and, following this transaction, has invested over US$300 million in the Company over the years.