Franchise Brands is seeking a buyer for ChipsAway, the largest mobile network of car repair specialists in the UK.
The multi-brand franchisor has appointed finnCap Cavendish to conduct the sale. The sale comes following a strategic review, which resulted in Franchise Brands focussing on the growth opportunities in its B2B division.
ChipsAway specialises in “SMART” (Small to Medium Area Repair Technology) repairs for retail customers, including bumper scuffs, paintwork scratches, minor dents and kerbed alloy wheels.
It has 191 franchisees, with coverage of approximately 90% of the UK population.
Stephen Hemsley, executive chairman of Franchise Brands, said: “As the UK’s leading SMART repair brand with a strong reputation and unrivalled national coverage, ChipsAway has considerable opportunities to capture more of its large and fragmented market.
“While our focus is on B2B, the larger part of our business, we believe the sale of ChipsAway presents an opportunity for a new owner to work with its fantastic team to drive the business forward and capitalise on its considerable potential.”
ChipsAway consistently generates around 300,000 consumer leads per year. In 2022, this translated into 66,000 completed repairs with estimated system sales of £18m.
Its franchisees primarily serve customers from branded vehicles which are mobile workshops for repairs at a customer’s home or office, or Car Care Centres and fixed unit facilities which can complete larger, more specialist, repairs.
Rival firm Smart Repairs increased its turnover by 38% in the past year, following its expansion to cover the whole of the UK.
The Leeds-based company, which services most of Yorkshire’s major car dealerships, has boosted its turnover to £8 million, while also trebling its workforce.
Smart repairs are one of five areas where car retailers can boost aftersales profitability.
Earlier this month AM reported that Lookers was making a muti-million-pound investment to grow its fleet of mobile service vans as it pursues growth in cosmetic repair and alloy wheel refurbishment.
The AM100 PLC’s chief operating officer, Duncan McPhee said: “Scaling the business will undoubtedly cost a few million quid, but the payback is pretty short, and the margin achieved to be better than the type of margin generated by the typical body shop.”
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- Source: https://www.am-online.com/news/supplier-news/2023/03/20/franchise-brands-to-sell-chipsaway
