Belron
Belron is the worldwide leader in Vehicle Glass Repair, Replacement and Recalibration. In 2019 Belron served 18.2 million consumers in 39 countries with a focus on service quality generating a very high level of customer satisfaction. Belron is trading under more than ten major brands including Carglass®, Safelite® and Autoglass®. In addition, it manages vehicle glass and other insurance claims on behalf of insurance customers. Belron’s purpose is to make a difference by solving people’s problems with real care. Its most valuable assets are its close to 26,000 employees.
Investment Case – Our Journey with Belron
The last 20 years: “Growing a winning business model into the global leader in vehicle glass repair and replacement”
In 1999 D’Ieteren Group acquired Belron from the Lubner family (Belron’s founding family) and South African Breweries. In the initial 20-year ownership period, D’Ieteren Group worked closely with Belron’s leadership team to increase market shares in the various countries and to penetrate new geographic markets (+26 countries) including the acquisition of Safelite in the US in 2007, which marked a cornerstone in Belron’s history. This was achieved by the simultaneous implementation of several initiatives:
- Deep focus on the quality of service to delight end customers, achieving world-leading Net Promoter Score (NPS >80%);
- Significant investments in Belron’s brands to develop Top of Mind Awareness and brand preference;
- Development of longstanding partnerships with all major insurance and lease & fleet companies for which it can decrease the average claim cost. In the US, these partnerships include the administration of claims through Safelite Solutions;
- Footprint expansion through new store openings, acquisitions and partnerships (e.g. partnerships with Total and Norauto in France).
Over that period, Belron has grown into the undisputed global leader in vehicle glass repair and replacement. The company’s sales and EBITDA grew more than six and ten-fold respectively.
The D’Ieteren Group team has also continuously and actively supported the Belron purpose and values, which are the building blocks of its strong and deeply engaging culture.
The path ahead: “Continued profitable growth”
The D’Ieteren Group team continues to collaborate closely with Belron’s management team to pursue its growth trajectory, with an additional focus on operational performance improvement and capture of recalibration opportunities. D’Ieteren Group is particularly involved in the following dimensions:
- Supports Belron in developing new products and services, with a strong focus on the recalibration of ADAS (Advanced Driver Assistance Systems) cameras mounted on the windscreen. This new service broadens Belron’s offering and considerably enhances its customers’ safety;
- Helps management identify opportunities to increase efficiency and improve operational performance (e.g. procurement, direct labour productivity);
- Continuously monitors Belron’s competitive landscape and supports Belron in executing acquisitions. In 2019 Safelite acquired and successfully integrated TruRoad, the largest acquisition in its history;
- Plays a pivotal role in Belron capital structure optimization.
D’Ieteren Group is also actively engaged with Belron’s team to ensure the company reaches its non-financial and sustainability targets for all its stakeholders (people, customers, society and shareholders).
Early 2018 D’Ieteren Group opened Belron’s capital to Clayton Dubilier & Rice (‘CD&R’), an American private equity firm which acquired a c.40% stake in the company. This marked the start of the second phase of ownership and a renewed partnership with Belron’s management.
