Blackstone, Carlyle Consider $2 Billion Sale of Service Kingby
The private equity owners of auto repair-center operator Service King Paint & Body LLC are considering a sale of the company, people with knowledge of the matter said.
Service King’s owners, Blackstone Group LP and Carlyle Group LP, have had discussions with bankers about starting a sale process this year, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The company could fetch more than $2 billion, the people said.
No final decision has been made and the firms may elect to keep the business, the people said.
Spokesmen for Blackstone and Carlyle declined to comment. A representative for Service King didn’t immediately respond to e-mailed requests for comment.
Blackstone agreed to buy a majority stake in Dallas-based Service King in 2014 for an undisclosed sum, as part of a recapitalization that saw Carlyle reinvest to take a minority stake, according to a statement at the time.
Service King traces its roots to 1976, when founder Eddie Lennox opened the first location. The company has 309 repair centers in 23 states, according to its website. That’s up from 177 centers when Blackstone struck the deal in 2014, and 47 locations when Carlyle first invested in 2012.