Successful Recapitalization After Twenty-Two Months
CHARLOTTE, NC and WASHINGTON, DC – June 16, 2005 – Carousel Capital and The Halifax Group announced today their successful exit from Meineke Car Care Centers, Inc. through a management-led recapitalization with financing provided by Allied Capital. Carousel and Halifax acquired Meineke in partnership with management in August of 2003. Meineke, headquartered in Charlotte, North Carolina, is one of the nation’s leading franchisors of retail automotive services. The company represents one of the largest chains of discount under-car specialists in North America, with nearly 900 locations in the United States, Canada and South America.
Over the course of the investment, Meineke launched numerous initiatives that grew revenues and profitability including revitalizing its brand image to emphasize new service offerings and introducing strategies to increase new center openings. During this time, the company also exited its company-owned operations in a strategic move to focus on its core franchising business model.
“Carousel and Halifax have been terrific partners for us over the past two years,” said Kenneth D. Walker, President and CEO of Meineke. “Their involvement and support of our growth strategy has created a great deal of value for investors and opportunities for the future of Meineke and its franchisees.”
Wachovia Securities acted as financial advisor to the investor group in the recapitalization of the company.
About Carousel Capital
Carousel Capital is a private investment firm that invests in Southeastern-based companies. With more than $300 million of capital under management, Carousel is one of the largest private equity firms in the Southeastern U.S. Carousel’s investors include an elite group of more than 65 current and former CEOs with expertise in a diverse group of industries. Carousel’s investor base also includes institutional investors such as financial institutions, insurance companies and pension funds. Since its inception, Carousel has invested in 20 companies across a wide range of industries.
About The Halifax Group
The Halifax Group, L.L.C., is a private equity investment partnership with approximately $330 million of capital under management between two investment funds. With primary offices in Washington, D.C. and Dallas, Texas, Halifax focuses on management-led recapitalization and leveraged buyouts in middle-market growth companies across a variety of industries.