Caliber Collision and ABRA Auto Body has merged in the US. The combined company now boasts over 1,000 stores with combined estimated revenues near $3.5 billion.

Brad Mewes from Supp Co, the US growth consultants for the collision repair business comments that this is a great deal for Caliber. "Geographically, it is very synergistic. The majority of ABRA’s locations were in states in which Caliber previously had no presence. Of the 28 states ABRA operated in, Caliber operated in only 10 of those states. Caliber now has beachheads in 18 additional states and now operates in 37 states (plus the District of Columbia) nationwide.

"From a competitive standpoint, Caliber now has significant market presence in each of the primary markets of its main competitors, Service King and The Boyd Group. In each state, with the exception of Michigan and a few less populous states, Caliber now has either the most stores, or a comparable number of stores relative to its competitors.

"From a revenue basis, Caliber now accounts for about 10% market share, or about three times the market share of either Service King or Boyd. The increase in market share and true national footprint will likely allow Caliber to drive additional efficiencies through its supply chain.

"Integration of an acquisition this large will require dedicated resources and potentially distracting. But Caliber historically has been an effective integrator. Additionally, the level of integration effort will likely be mitigated due to the fact there is relatively little geographic overlap between the organisations. Regardless, re-imaging 400 stores and ensuring continuity of operations at each location is no small feat."

Mewes predicts increased competition for independents and small MSOs as well as market disruption and further growth by Caliber.

Commenting on the merger Steve Grimshaw, Caliber Chief Executive Officer said: “This combination will allow us to offer even greater satisfaction for our valued customers and insurance clients while creating new opportunities for the talented teammates of both companies.

“With more than 1,000 stores in 37 states and the District of Columbia, we look forward to providing customers and insurance clients with the flexibility and convenience that come with the broadest geographic coverage in the United States and a full suite of services. We’re confident the technological and operational investments will create unparalleled customer service, enhanced repair quality and industry-leading metrics, all of which advance our purpose of restoring the rhythm of our customers’ lives.”
"Customers and insurance clients alike will benefit from consistent, high-quality service as well as an expanded array of service offerings. The combined company will offer customers and clients a single solution with more offerings, including dedicated Non-Drive, Express and Aluminum-certified and high-line repair centers. Customers will also benefit from increased choice, as substantial opportunities exist to expand the companies’ offerings such as glass, mechanical, diagnostic scanning and calibration services and the broadest network of OEM-certified locations in the U.S.
“We plan to maintain all existing centers from both companies as we develop and execute a plan to work smarter, generate growth, offer expanded services, drive operational excellence and reward talent across the organization. Recognising the critical importance of top talent to our success, we will be retaining all teammates in the field at both Caliber and ABRA centers, and we look forward to creating a culture that supports our teammates as they expand their careers across a larger organization, accelerated by industry-leading development programs.”
“Our industry becomes more complex every year,” said Abra CEO Ann Fandozzi. “The combined company will invest in the equipment, training and technologies that will allow our teammates to build their careers while continuing to meet and exceed our customers’ needs for years to come. Abra’s leadership team is excited by the opportunities this combination with Caliber creates for customers, insurance clients and teammates. We look forward to seeing our traditions of stellar customer service, unparalleled operational excellence and team development taken to the next level across the United States.” Caliber CEO Steve Grimshaw will lead the combined company.

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