Sterling Collision Centers Sold to Allstate Corporation
BOSTON--(BUSINESS WIRE)--May 8, 2001--Berkshire Partners
LLC ("Berkshire"), the Boston-based private equity investment firm,
announced today a definitive agreement to sell Sterling Collision Centers, Inc.
("Sterling") to The Allstate Corporation ("Allstate").
Financial terms of the agreement were not disclosed.
headquartered in Natick, MA, is one of the nation's leading consolidators of
automotive collision repair centers. Sterling was formed in 1997 by management
and other investors, including Conning Capital Partners ("Conning"),
in order to acquire and operate collision repair centers. In May 1998,
Berkshire, Conning and other existing shareholders invested an additional $25
million in the company to further support its acquisition strategy. The company
currently operates 39 facilities in Florida, Georgia, Illinois, Michigan, Ohio,
Pennsylvania, and Texas.
1998, it was clear the $24 billion auto body repair industry was significantly
under served and highly fragmented," noted Berkshire Managing Director Ross
Jones. "Sterling was an attractive investment because its strong management
team was well on their way to creating a superior collision repair business
model. Allstate's acquisition of Sterling is a great strategic fit because it
will enable Allstate to leverage Sterling's model to better serve its customers,
while reducing costs."
are very excited about this new relationship," said Sterling CEO Jonathan
McNeill. "Allstate will be a terrific partner. They share our vision of
expanding our model to other markets and are equally committed to customer
satisfaction. Like Sterling, they understand that it is good business to reduce
repair times and improve the facilities' efficiencies while delivering superior
Partners is an active investor in the private equity market managing $1.8
billion of capital. Through its 15-year investment history, Berkshire has
completed 70 acquisitions or growth capital investments with a primary focus on
building solid, growth-oriented companies in conjunction with strong, equity-incented
management teams. Berkshire invests in a number of industries including
transportation, telecommunications, retailing, business services, and
manufacturing. Its private equity transactions have taken several forms;
leveraged buyouts, recapitalizations, growth capital investments,
privatizations, and industry consolidations. Investors consist primarily of
university endowments, public and private pension funds, insurance companies,
foundations, and financial institutions.
Capital Partners, a unit of Conning & Company, (Member: NASD/SIPC), is a
prominent investor in financial services and e-commerce firms. Headquartered in
Hartford, Connecticut, Conning Capital Partners has close to $600 million under
management invested in a wide variety of financial services and technology
companies, including software, brokerage, banking, insurance and managed care
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate(R)" slogan, Allstate provides insurance products to more than 14 million households and has approximately 13,000 exclusive agents in the U.S. and Canada. Customers can access Allstate products and services through Allstate agents, or in select states at allstate.com and 1-800-Allstate. Encompass and Deerbrook Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group includes the businesses that provide life insurance, retirement and investment products.