Roark Capital-Owned Driven Brands Announces IPO Plans — Targets $3.4 Billion Business Valuation

By Adriaan Brits Friday, January 8, 2021

Driven Brands, one of the largest US auto services franchises, has announced Its IPO plans for the near future. The company will issue 38 million shares with prices ranging from $17 to $20 per share, according to a press release.

Roark Capital to Cash In

In a filing submitted yesterday, Driven Brands said it plans to raise $760 million through an initial public offering (IPO). The company said its shares will be listed on the Nasdaq, under the ticker symbol “DRVN.”

For the business, selling its shares at this price would value the auto services company at about $3.4 billion. The company is looking to benefit from its increased interest in new firms as 2021 is expected to be marked by numerous multi-billion dollar IPOs.

“Driven Brands intends to use the proceeds from the offering and cash on hand to repay in full the outstanding indebtedness under certain credit facilities and to pay fees and expenses in connection with the offering,” the company said in a statement.

“Driven Brands also intends to grant the underwriters a 30-day option to purchase up to 5,700,000 additional shares of common stock. If the underwriters exercise their option to purchase additional shares, Driven Brands intends to use a portion of the net proceeds therefrom to acquire shares of common stock from certain of its existing stockholders.”

Driven Brands generates about $900 million in revenue annually from more than $3 billion in system-wide sales for its business. This year, the company reported $2.4 billion in sales and $616 million in revenue for the nine months to September 26.

The auto services franchise is owned by private equity firm Roark Capital Group, which has about $20 billion in assets under management. The investing company acquired Driven Brands in 2015 from Harvest Partners. According to Reuters, Roark Capital considered selling Driven for about $2 billion.

The Charlotte-based company is reportedly the largest auto services business in North America. According to the company’s data, it currently operates 4,100 centers across 15 countries and services over 50 million vehicles per year.

The firm added that banking giants Morgan Stanley, BofA Securities, JP Morgan, Goldman Sachs, and Barclays will act as lead underwriters for its IPO.

Summary

Driven Brands, owned by Roark Capital Group, has announced plans to go public. The auto services firm is seeking to raise $760 million through an IPO that will value the company at about $3.4 billion.

About the Author


Headshot for author Adriaan Brits

As an analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in Advanced Analytics & Media.

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