US DEAL CONFIRMS CHIPSAWAY AS GLOBAL LEADER

Press release date: 10-Apr-2007

In a surprise move, one of the Europe’s leading franchise organisations, ChipsAway International, has taken the highly unusual step of acquiring the worldwide Trademark rights (excluding the US and Canada) from its US parent, ChipsAway Inc. of Pittsburgh, in a multi-million dollar deal signed this week. ChipsAway operations in the US and Canada remain under the control of ChipsAway Inc., although ChipsAway International will be providing expertise and support for the future development of the North
American franchise network.  

The deal, which was partly funded by Lloyds TSB Commercial, consolidates ChipsAway’s position as the largest franchise organisation of its type in the world and safeguards future supply of the company’s unique paint repair formulations.

Commenting on the acquisition, Chairman of ChipsAway International, Roger Wild said,

“This is a massive step forward for ChipsAway International and is the result of many years of hard work. The ChipsAway brand is already well known across Europe and the ownership of the mark will provide us with full opportunity to develop promising commercial prospects currently under consideration in different parts of the world.”

“Furthermore, together with our American colleagues, this deal ensures that ChipsAway has the resources to maintain its position at the forefront of the cosmetic automotive repair industry.”

Speaking on behalf of Lloyds TSB Commercial, Darren Baker, Commercial Relationship Director, added,

“We have long recognised ChipsAway International as an innovative and professional organisation with a strong base for expansion. Over the last few years we have been working in close co-operation with ChipsAway to secure optimal financial options for new and prospective franchisees, and have the highest regard for the management team. Now we are delighted to have supported this milestone deal and look forward to a long term relationship with the ChipsAway Group as it continues to pursue development plans worldwide.”

Roger Wild confirmed that changes will include moving the manufacture of the exclusive ChipsAway product range into Europe, shortening supply lead times for franchisees and delivering important supply flexibility to the company in the light of recent legislative changes within the EU.

He concluded, “We are proud that this acquisition will add value to our franchisees’ businesses, now that one of the best known names in franchising is UK owned. We relish our new challenge to realise ambitious plans for expansion, particularly with regard to developing our brand worldwide.”

The unique ChipsAway SMART (Small to Medium Area Repair Technology) repair system, enables automotive paintwork to be repaired by a trained technician to factory finish standard, in a fraction of the time taken by a traditional body shop, and at a highly competitive price. With 33 million cars on the road in the UK and around 15 million repair opportunities a year, clearly ChipsAway has hardly ‘scratched the
surface’ of this vast marketplace.

ChipsAway (which is partly owned by Barclays Ventures) is the dominant brand in the lucrative SMART repair sector, with over 500 operators across Europe, and eleven Master Franchisors worldwide.