Earl Scheib Paint and Body acquired by Kelly Capital

Earl Scheib, Inc. (Paint & Body & Collision Repair), founded in 1937, was recently acquired by Kelly Capital, LLC for a purchase price of $2.00 per share in cash and is now a wholly-owned subsidiary of the San Diego-based private equity fund.

This transaction, including assumed debt and transaction costs, is valued at approximately $16.7 million. The owners of Earl Scheib common stock shares have the right to receive $2.00 in cash for each share, without interest.

Earl Scheib, Inc., founded in 1937, currently operates 86 automotive paint and collision repair shops in about 77 cities throughout the United States. In addition, Earl Scheib manufactures its own paint which is used not only by its paint and collision repair shops, but is also sold to original equipment manufacturers and used by architectural construction firms.

In the 1950s and ‘60s Scheib went national with his chain and made a fortune. In 1964 Scheib’s had over 250 company-owned locations.

The founder, Earl A. Scheib, was known for his memorable, low-cost auto-painting commercials. Personally appearing in his TV ads, his slogan in the 1960s was, "Hi I'm Earl Scheib and I'll paint any car any color for $29.95."

Those commercials have been spoofed in movies and on TV.

In a line from Steve Martin's 1987 movie Roxanne: "Hi, I'm Earl Scheib, and I can paint that nose for $39.95!"

In a scene in The Nutty Professor, Buddy Love says, "Your mama's so fat, she gets her toenails painted at Earl Scheib!"

Scheib’s philosophy was "work hard, be on time, and don't worry about how much you make."

Although Earl Scheib, Inc. was very successful, Wikipedia reports that the company’s “policy of one-day service and production line techniques flew directly in the face of state-of-the-art professional auto body standards.”

When he died 1992, at age 84, Scheib left behind a struggling company. After his death the board of Earl Scheib Inc. named one of his three sons Donald R. Scheib, to replace him as chief executive officer and to attempt to get the business growing again, according to The New York Times.

The company’s famous $29.95 guarantee has long since given way to a coupon price of $299 (Regularly $359).

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Kelly Capital, LLC, a private investment firm established in 1993, is focused on special situations investments in operating companies, real estate and debt.