Investor Group Led by BayPine, in Partnership with TSG Consumer Partners, to Acquire Mavis Tire Express Services

Mar 05, 2021

BOSTON & SAN FRANCISCO & MILLWOOD, N.Y.--(BUSINESS WIRE)--An investor group led by BayPine LP (“BayPine”), in partnership with TSG Consumer Partners LP (“TSG”) and existing significant equity-holder West First Management (“WFM”), a holding company controlled by David and Stephen Sorbaro, today announced they have entered into a definitive agreement to acquire Mavis Tire Express Services Corp. (“Mavis” or the “Company”), one of the largest independent automotive service platforms in the United States. Golden Gate Capital, Mavis’ current lead financial partner, will retain a minority interest in the Company.

Upon closing, David and Stephen Sorbaro will continue to serve as Co-Chief Executive Officers of the Company, supported by a deep and talented management team comprised of leaders from Mavis, Express Oil, Brakes Plus and Town Fair Tire, all adding significant industry operating expertise.

Founded in 1972 by the Sorbaro family, and with roots dating back to 1949, Mavis is a leading independent tire dealer and automotive aftermarket service provider with more than 1,100 service centers primarily in the Northeast, Midwest and Southern United States. The Company’s repair and maintenance products and services include tires, brakes, alignments, suspension, shocks, struts, oil changes, battery replacement and exhaust work, among other offerings. Mavis has rapidly grown its platform through the successful completion of several strategic acquisitions in recent years, including the November 2020 merger with Town Fair Tire, a leading business in New England, which continues to operate as the same deep-rooted brand founded by the Mellen family. Since 2015, the Company has added approximately 1,000 service centers to its growing network of stores.

“Mavis is a clear leader in attractive markets across the country with a proven track record of driving consistent growth through economic cycles,” said Anjan Mukherjee, Managing Partner at BayPine. “By leveraging BayPine’s digital transformation and technology expertise, we believe there is a significant opportunity to enhance Mavis’ customer experience, capture operating efficiencies, and bolster the Company’s position as the go-to brand for auto care nationwide. We look forward to working closely with management as they continue to execute upon their successful consolidation strategy.”

Messrs. Sorbaro stated, “We are excited to partner with BayPine and TSG, who bring significant financial, digital, and operational capabilities to our business. Importantly, our tradition of Value Oriented Service remains unwavering as we scale the Mavis platform. We will continue to work hard every day to earn the trust of our valued customers and enhance our product and service offerings to meet their evolving needs. We are grateful for Golden Gate Capital’s support over the past four years and are pleased they will remain investors.”

“Mavis has established itself as a leading national automotive services platform with a longstanding reputation for providing customers with exceptional service,” said Bill Cooling, Managing Director at TSG. “We are thrilled to leverage our consumer expertise to support David, Stephen and the entire Mavis team as the Company looks to capitalize on a number of exciting growth opportunities, including expanding its geographic footprint and increasing its digital capabilities,” added Pierre LeComte, Managing Director at TSG.

“Mavis represents the ideal business that we look to partner with, and we are eager to work alongside management, WFM and TSG to accelerate the Company’s next phase of technology-enabled growth,” said Steve Ko, Founding Partner at BayPine. “We have known and respected David and Stephen for many years and we look forward to maintaining the ideals and foundation on which this iconic family business was built. Together, we will endeavor to establish a true digital presence for the business and further Mavis’ reputation for offering high-quality, low-cost services to its deeply loyal customer base,” said Tom O’Rourke, Managing Director at BayPine.

Josh Cohen, a Managing Director at Golden Gate Capital, said, “We are grateful for our successful partnership with David and Stephen Sorbaro and the dedication of the entire Mavis Express organization. Following the merger of Mavis Tire and Express Oil in 2018, the Company has grown to become one of the largest independent tire and service provider platforms in the U.S. while maintaining its deep-rooted commitment to integrity, trust and high-quality customer service. With this strong foundation in place, we are confident BayPine and TSG will be excellent partners for the Company’s next phase of growth. We feel privileged for the opportunity to be part of the Mavis story and are excited to support the Company’s continued success as a minority shareholder.”

The investor group also includes StepStone Group. Additionally, a group of financing partners led by Jefferies and Owl Rock Capital, and including Ares Capital Management and certain affiliates and funds managed by affiliates of Apollo Global Management, Inc., is supporting the transaction.

Jefferies acted as sole financial advisor to Mavis. Covington & Burling LLP and Ropes & Gray LLP each served as legal advisor to Mavis, and to the Sorbaro family and Golden Gate Capital, respectively. Kirkland & Ellis LLP and Ropes & Gray LLP are acting as legal counsel to the investor group.

Terms of the transaction, which is expected to close in the second quarter of 2021, were not disclosed.

About Mavis Tire Express Services Corp.

Mavis Tire Express Services, based in Millwood, New York, is one of the largest independent tire and service providers in the United States, with more than 1,100 service centers across 27 states. In addition to its core offering of tires from over 20 major brands, Mavis offers a menu of repair and maintenance services including brakes, alignments, suspension, shocks, and exhaust. Mavis, which was founded in 1972 by Marion and Victor Sorbaro and has roots dating back to 1949, has a strong reputation for delivering best-in-class customer service and quality. For more information, visit www.mavistire.com.

About BayPine

BayPine is a private investment firm that seeks to create lasting value for the firm's investors, portfolio companies and communities in which they operate by driving innovation, digital transformation and sustainable growth in market-leading businesses across traditional sectors of the economy. Headquartered in Boston, BayPine was founded by a team of accomplished investors and senior executives who have a shared passion for building enduring companies. For more information about BayPine, please visit www.baypine.com.

About TSG Consumer Partners

TSG Consumer Partners LP is a leading private equity firm that partners with founders and management teams to build and accelerate growth for best-in-class consumer-facing businesses. Since its founding in 1987, TSG has been an active investor in the automotive, food, beverage, restaurant, fitness, beauty, personal care, household, apparel & accessories, and e-commerce sectors. Representative past and present partner companies include Backcountry, BrewDog, Canyon Bicycles, Duckhorn Wine Company, Dutch Bros, e.l.f. Cosmetics, IT Cosmetics, Planet Fitness, popchips, Power Stop, REVOLVE, Smashbox Cosmetics, Stumptown, thinkThin and vitaminwater. For more information, visit tsgconsumer.com.

About Golden Gate Capital

Golden Gate Capital is a San Francisco-based private equity investment firm with over $17 billion of committed capital. The principals of Golden Gate Capital have a long and successful history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. Notable multi-unit consumer investments sponsored by Golden Gate Capital include The Learning Experience, Invo Holdings and Tidal Wave Auto Spa. For more information, visit www.goldengatecap.com.