Driven Brands Caps Record-setting IPO, Buys 100th Car Wash | Dealmakers


CFO Tiffany Mason recruited 16 execs to aid guideline Driven Brands’ IPO.

Driven Brands’ explosive first community featuring with Roark Capital exiting was the end result of a multi-calendar year course of action. Following signing up for the workforce as CFO in March 2020, Tiffany Mason instantly commenced drafting Kind S-1, the initial registration type the Securities and Exchange Commission requires community companies to file. Then, the pandemic strike and prevalent keep-at-dwelling orders took position.

Driven Brands, which is headquartered in Charlotte, North Carolina, is the biggest automotive aftermarket expert services company in North The usa and has additional than 4,300 areas in 15 nations, which generates about $4 billion in systemwide sales.

Pushed retained its S-1 submitting timeline intact mainly because it preferred to be geared up to choose the firm general public when the region reopened, Mason stated, “so it was not us not being all set, it was the market not staying ready that was heading to hold off us. We kept heading irrespective of what was going on just to make absolutely sure.”

Mason recruited 16 seasoned executives from publicly traded organizations to deal with the IPO and make sure compliance with all regulations. The organization also employed the COVID pause to seize the prospect to enter the motor vehicle clean business enterprise in August 2020, and acquired its 100th automobile wash, subscription-based Magic Tunnel Car or truck Wash, in fall of 2021.

“Buying a vehicle wash organization in the center of 2021 established us up for an IPO valuation that was much extra fruitful, and we made use of every single little bit of delays and marketplaces currently being ceased to our benefit,” Mason said. The vehicle clean business enterprise also bolstered the company’s all round expansion, which arrived at about $1.08 billion in whole income in the initial 3 quarters of 2021—a 75 {194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} raise calendar year more than year.

Driven Models completed its IPO on January 14, 2021, of 31.8 million shares on Nasdaq less than the ticker DRVN at $22 for every share—19 p.c larger than the initial assortment of $17 to $20. Driven lifted $700 million and was the only retail IPO more than $500 million to cost $2 over the range in Wall Road record, and the maximum file-to-offer of any consumer and retail IPO around $500 million, according to Financial institution of The usa, bookrunner on the deal.


Jonathan Fitzpatrick

Within 30 days soon after the IPO, underwriters exercised an overallotment choice for an supplemental 4.8 million shares. As of late March, Driven’s inventory price tag was $26.93 per share and its current market capitalization was $4.51 billion.

Jonathan Fitzpatrick, Pushed Makes CEO, recalled, “I believe we had been about a week away from starting our roadshow when the awful incident at the capitol took place, January 6, which established the marketplaces into turmoil. The staff allow by Tiffany and others in Pushed did a phenomenal occupation taking care of heaps of micro conditions.”

When questioned how likely general public has modified what he can and cannot share about Driven Makes, Fitzpatrick laughed. “I’m most likely muzzled a small little bit more than I was before,” he admitted. “I’m ordinarily fairly open and transparent all around all points in the organization, and have been for the prior 10 decades, but these are the principles of engagement … I have to be a very little more disciplined in what I talk about, and nonetheless consider to do it with enthusiasm, strength and as a great deal transparency as feasible.”

“The IPO was type of like a wedding ceremony,” Mason included. “It’s a level in time, but what comes about just after that is what genuinely matters. We celebrated like we should, but know we have received to continue on to produce every quarter and place up wonderful outcomes, improve, make credibility and provide our shareholders.”