01/05/2023
For many car owners, a swift and reliable oil change is a fundamental part of maintaining their vehicle's health. In the automotive aftermarket landscape, certain brand names become synonymous with convenience and quality. One such name that has seen significant development is Take 5 Oil Change. If you've been wondering about the recent history and ownership of this well-known quick lube service, the answer lies in a major acquisition that reshaped its trajectory. In March 2016, a pivotal announcement was made that would see Take 5 Oil Change become part of a larger automotive powerhouse.
The Acquisition: Driven Brands Takes the Helm
The year 2016 marked a significant turning point for Take 5 Oil Change. Driven Brands, a prominent franchisor in the automotive sector and a portfolio company of Roark Capital, announced the acquisition of the Louisiana-based Take 5 Oil Change. At the time of the acquisition, Take 5 Oil Change was a well-established entity, operating 65 quick oil change facilities across nine states in the Southeastern United States. Founded in 1984, the company had built a strong reputation for its efficient service, famously pioneering the "5 Minute Drive-Thru Oil Change" concept back in 1996. This move by Driven Brands was a strategic expansion of its Quick Lube division, which already included other notable names like Pro Oil Change and Driven Florida Lubes.
Strategic Rationale Behind the Deal
Jonathan Fitzpatrick, the CEO of Driven Brands, articulated the company's vision behind this acquisition. He stated, "We are actively expanding our footprint through the strategic acquisition of top-performing, complementary auto aftermarket services companies." This sentiment underscored Driven Brands' commitment to consolidating its position in the automotive aftermarket by bringing together leading brands. Take 5 Oil Change was identified as an "ideal addition" due to its perfected processes, industry-leading customer service, and strong brand recognition. The acquisition was not just about increasing market share; it was about integrating a company with a proven operating model and a capable management team. Marc Graham, who had been the CEO of Take 5 Oil Change since 2013 and possessed over 40 years of experience in the automotive aftermarket, was slated to lead the entire Driven Brands Quick Lube division. This ensured continuity and leveraged his extensive expertise.
What This Meant for Take 5 Oil Change
For Take 5 Oil Change, the acquisition presented a substantial opportunity for accelerated growth. Marc Graham expressed his enthusiasm, stating, "This is a tremendous opportunity for Take 5 Oil Change to grow our business to the next level." He highlighted the benefits of the partnership, including access to "world-class technology, purchasing power, operational support and resources." These elements were crucial for enabling Take 5 Oil Change to scale its operations, enhance its service offerings, and reach new markets more effectively. The backing of Driven Brands and Roark Capital provided the financial and strategic muscle needed to achieve these ambitious growth plans. The management team remained in place, and the headquarters in New Orleans continued to serve as a central hub, ensuring a smooth transition and maintaining the company's established identity.
Driven Brands' Expanding Portfolio
The acquisition of Take 5 Oil Change was a significant step in Driven Brands' broader strategy. Driven Brands manages a diverse family of automotive companies, including well-known names such as Maaco, Meineke Car Care Centers, and CARSTAR North America. Collectively, these brands generated impressive annual system revenues exceeding $2.1 billion. The Take 5 Oil Change acquisition represented the fifth acquisition for Driven Brands in the year following Roark Capital's acquisition of the parent company. This aggressive expansion strategy had, by that point, increased the collective footprint of Driven Brands' businesses to over 2,000 locations across the United States. This consolidation allowed Driven Brands to leverage synergies across its various brands, optimize supply chains, and offer a more comprehensive suite of automotive services to consumers.
Key Takeaways and Future Outlook
The integration of Take 5 Oil Change into Driven Brands signifies a successful consolidation within the quick lube sector. The acquisition aimed to combine the operational excellence and customer focus of Take 5 Oil Change with the strategic resources and expansive network of Driven Brands. This partnership allowed Take 5 Oil Change to benefit from the scale and expertise of a larger organization, while Driven Brands strengthened its position as a leader in the automotive aftermarket. For consumers, this often translates to more convenient locations, consistent service quality, and potentially enhanced offerings as the brands continue to evolve.
About the Key Players
To better understand the context of this acquisition, it's helpful to look at the entities involved:
| Entity | Description |
|---|---|
| Driven Brands | Headquartered in Charlotte, NC, Driven Brands is the parent company of leading automotive aftermarket brands in North America. Their portfolio spans four distinct verticals: Repair & Maintenance (Meineke, Merlin 200,000 Mile Shops), Paint & Collision (Maaco, CARSTAR North America, Drive N Style), Distribution (1-800-Radiator & A/C), and Quick Lube (Pro Oil Change, Econo Lube N' Tune, Driven Florida Lubes, and Take 5 Oil Change). They boast over 2,000 centers and generate over $2.1 billion in system sales annually. |
| Take 5 Oil Change | A market leader in speed and quality, Take 5 Oil Change is the fastest-growing quick lube chain in the country. Founded in 1984, they pioneered the "5 Minute Drive-Thru Oil Change" concept, emphasizing efficiency and customer convenience. |
| Roark Capital Group | Roark Capital is a private equity firm specializing in consumer and business services companies, with a particular focus on franchised and multi-unit business models. They have a significant track record of acquiring and growing brands across various sectors, including automotive aftermarket. |
Frequently Asked Questions
Q1: Who bought Take 5 Oil Change?
Driven Brands, a major automotive franchisor, acquired Take 5 Oil Change in March 2016.
Q2: Why did Driven Brands acquire Take 5 Oil Change?
Driven Brands acquired Take 5 Oil Change as part of a strategic expansion of its Quick Lube division, aiming to leverage Take 5's strong brand, operational model, and customer service to accelerate growth.
Q3: Did Take 5 Oil Change go out of business?
No, Take 5 Oil Change did not go out of business. It was acquired by Driven Brands and continues to operate and grow as part of their portfolio.
Q4: What is the relationship between Take 5 Oil Change and Driven Brands now?
Take 5 Oil Change is a subsidiary brand within Driven Brands' Quick Lube division. Its former CEO, Marc Graham, now leads the entire Driven Brands Quick Lube division.
Q5: How many locations did Take 5 Oil Change have at the time of the acquisition?
At the time of the acquisition in March 2016, Take 5 Oil Change operated 65 quick oil change facilities.
The acquisition of Take 5 Oil Change by Driven Brands in 2016 was a significant event that highlighted the consolidation and growth within the automotive aftermarket services industry. It brought together a specialized quick lube provider with a large, diversified automotive group, setting the stage for continued expansion and enhanced service offerings for customers across the United States.
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