The auto repair industry is booming. More consumers are postponing new car purchases amid ongoing inflation, high prices on new vehicles, and high auto loan costs — driving demand for maintenance and repair services on older vehicles. Meanwhile, the rise of hybrid and fully electric vehicles has carved out new service areas, such as battery repair, that require specialized skills and equipment.
Private market dealmakers are getting in on the action. Mergers and acquisitions in the auto repair industry have seen some fluctuation over the last ten years, but they have generally trended upward. Activity levels are currently hovering near all-time highs.
In this PE Playbook, the Grata team has put together the need-to-know trends for investors considering making moves in the auto repair market, including:
- How the industry is fragmented
- Recent acquisitions in the space
- Which segments are seeing the highest growth rates
The market map above is not intended to be an exhaustive representation of companies in the space.
Companies that provide services that fall into multiple segments are categorized in this report by their primary offering.
Key Insights into the Auto Repair Industry
- M&A activity in the auto repair industry has seen some light fluctuation, but has generally ramped up over the course of the last 10 years.
- The US, the UK, and Germany lead the global market by number of companies.
- Private fleet services companies see the most average revenue by far.
- The collision & body services segment leads in terms of growth at an average rate of 34.9%.
M&A Trends in the Auto Repair Industry
Transactions
Source: Grata
Activity from financial sponsors and strategic buyers has increased over the course of the last 10 years despite some light fluctuations. With a few weeks left in 2025, strategic acquisitions are hovering near the peak seen in 2023.
Most Active Financial Sponsors in Auto Repair
TPG tops the list of most active financial sponsors in the auto repair industry with 37 relevant transactions. Its acquisitions in the space focus primarily on companies in the collision & body and tires & wheels markets.
Most Active Strategic Acquirers in Auto Repair
Source: Grata
Lithia & Driveway is the most active strategic acquirer in the auto repair industry with 93 transactions. Its acquisitions mainly include dealerships that provide maintenance and quick services for specific auto brands.
Auto Repair Industry Overview
Market Distribution
Geography
Source: Grata
The US, the UK, and Germany are the top three countries in the global auto repair industry. Other heavy hitters in the space include France, Canada, and Australia.
Source: Grata
Dealmakers in the US should have no trouble finding opportunities in the auto repair industry.
California, Texas, and Florida occupy the top three spots for total auto repair and maintenance companies. California is also known for having some of the highest mechanic wages in the country, especially in metropolitan areas. Pennsylvania and New York take the top fourth and fifth spots, respectively.
Certain states are offer more opportunities for specialized services:
- Demand for farm equipment mechanics is particularly strong in states like Georgia, New Mexico, New Jersey, and California.
- Dealmakers interested in small engine mechanics should look to Alaska, Delaware, and Arkanas.
- Michigan, Texas, Ohio, and Illinois are the top states for opportunities in heavy equipment maintenance and repair services.
Ownership
Source: Grata
The auto repair industry is highly fragmented. Currently, there are over 75,000 privately owned companies that are ripe for acquisition.
Segment Distribution
Source: Grata
This report focuses on the following segments of the auto repair industry. Grata users can see curated lists of some of the companies used to create each segment by clicking the links below.
Auto Repair Public Comparables
Source: Grata
In the public realm, the tires & wheels segment is far and away the leader in terms of average revenue. This makes sense, as these services see consistent, repeated demand. They are required for every kind of vehicle. Tires need to be replaced on a regular, predictable cycle. And then there’s the cost: tire & wheel services are more expensive than most routine maintenance services. All of these factors combined drive up earnings for companies in the space.
The tires & wheels segment also leads the pack in terms of average annual growth. A key factor here is that tire wear is accelerating faster as a result of heavier vehicles with larger wheels and EV torque.
Electrical repair services see the second-highest rates of mean revenue. This can be attributed to the rise in fully electric and hybrid vehicles, which rely on advanced electronics, sensors, and software. Because the individual technical components of EVs are so interconnected, an issue with a single part can have ripple effects, requiring more expensive repairs. Additionally, replacing an EV battery is much more expensive than replacing a battery for a traditional gas car. EV batteries range from $5k-$20k compared to $100-$300 for gas cars.
Auto Repair Private Comparables
Source: Grata
In the private sphere, fleet services companies typically see the most average revenue. This is largely due to the fact that their clients are other companies rather than individuals. A single customer can come with hundreds of vehicles with recurring maintenance needs and multi-year service agreements.
Meanwhile, the collision & body segment sees the most average growth of the sectors analyzed in this report. This is due to a number of factors, including:
- Record numbers of vehicles on the road naturally leads to more car accidents.
- Repair costs in the collision & body segment tend to run higher than in other auto repair markets.
- The collision & body sector is a hotbed for consolidation, pooling revenue into fewer, larger organizations.
- Because most collision repair services are covered by auto insurance, insurance providers direct customers to repair shops in their network. This guarantees a steady flow of customers.
Notable Acquisitions in the Auto Repair Industry
Source: Grata
Ciclad Acquires Capelec
Ciclad Gestion Sarl, a PE firm based in France, acquired Capelec in October for an undisclosed amount. Capelec, which is also based in France, provides equipment and services for garage and auto inspection. It offers emissions testing, headlamp testing, brake testers, and particle measurement equipment.
If you’re an investor interested in companies similar to Capelec, try these:
Learn more about this acquisition — or any of the others listed below — anytime, anywhere using the latest version of the Grata Go mobile app. Get all of the ownership and investment data you need right in the palm of your hand.
GreatWater 360 Buys Richlonn’s Tire & Service Centers
Also in October, Michigan-based GreatWater 360 Auto Care purchased Richlonn’s Tire & Service Centers. Richlonn’s is based in Wisconsin. It offers tire sales, tire installation, and tire repair, as well as general automotive repair services. Financial terms of the deal were not disclosed.
If you’re an investor interested in companies similar to Richlonn's Tire & Service Centers, try these:
Boyd Group Services Purchases Joe Hudson’s Collision Center
Boyd Group Services, a Canada-based company that operates a network of non-franchised collision repair centers, bought Joe Hudson’s Collision Center in late October. Joe Hudson’s service offerings range from minor paint touch-ups to major structural repairs. It was valued at $1B at the time of the deal.
If you’re an investor interested in companies similar to Joe Hudson's Collision Center, try these:
Kerry Bros. Truck Repair Acquires Downriver Bus & Truck Repair
Michigan-based Kerry Bros. Truck repair acquired Downriver Bus & Truck Repair in November. Downriver Bus & Truck Repair specializes in repairs for medium-heavy-duty vehicles, including buses and recreational vehicles. It also provides routine inspections.
If you’re an investor interested in companies similar to Donwriver Bus & Truck Repair, try these:
Van Mossel Automotive Group Buys Ocean Automotive Limited
Netherlands-based Van Mossel Automotive Group purchased Ocean Automotive Limited in late November. Ocean Automotive is a UK-based company that operates service centers for new and used cars. Financial terms of the deal were not disclosed.
If you’re an investor interested in companies similar to Ocean Automotive, try these:
Victory Auto Service & Glass Purchases Babcock Auto Care
Minnesota-based Victory Auto Service & Glass acquired Babcock Auto Care for an undisclosed amount. Babcock Auto is also based in Minnesota. It provides a range of auto repair and maintenance services for all makes and models of vehicles, including diesel trucks, classic cars, and fleets.
If you’re an investor interested in companies similar to Babcock Auto Care, try these:
Edvin Larsson’s Mechanical Acquires Melin & Carlsson Hydraulics
Sweden-based Edvin Larsson’s Mechanical, which produces hydraulic cylinders and grippers, purchased Melin & Carlsson Hyrdaulics in December. Melin & Carlsson manufactures customized hydraulic cylinders for mobile and industrial applications. Financial terms of the deal were not disclosed.
If you’re an investor interested in companies similar to Melin & Carlsson Hydraulics, try these:
Live Auto Repair Deals
Hundreds of live deals and active mandates are being showcased on the Grata Deal Network. Here are some examples of mandates related to the auto repair industry:
- Two auto body shops with $6.9M in revenue and a $2.3M EBITDA
- A Los Angeles-based auto body franchise with a $4.7M expected valuation
- A tire & auto services business with an expected valuation of $7.5M
If you’re interested in these deals and you want to see more, register to learn more here. Grata users can see these deals directly in the Grata Deal Network using the links above.
Are you a sell-side advisor interested in generating inbound leads for your data center infrastructure deal? Get started here.
Auto Repair Conferences
Grata makes it easy for dealmakers to find conferences, events, and trade shows in their industries. See attendee lists so you can set up meetings beforehand and make the most of your travel time. Check out which companies attended past events to find more potential targets.
Here are a few of the events related to the auto repair industry that dealmakers can find and track in Grata:
Get the Most Out of the Playbook
If you’re an investor interested in making moves in the auto repair space, Grata can help you put the insights in this article into action.
From in-depth market research to sourcing to pipeline management and relationship nurturing, Grata’s end-to-end dealmaking platform streamlines your workflows so that you can close more deals.
Schedule a demo today to get started.
