I met last week this System Parking’s President John Phillips and got a “heads up” on this tidbit. John was very happy with the prospects of doing business with 5 Star. Here’s a bit of their newsrelease:
The L&R Group of Companies, (“L&R”) headquartered in Los Angeles, California, announced today that it has completed the acquisition of System Parking, Inc. (“System”), headquartered in Chicago, Illinois. This acquisition integrates System into one of the nation’s largest parking organizations, bringing together Five Star Parking, WallyPark, Joe’s Auto Parks and System Parking, Inc. all under one roof. The inclusion of System into the L&R Group of Companies adds an additional 250 locations and creates a company that employs over 5,000 employees in 28 Cities in 17 States from coast to coast. L&R’s business model differentiates itself from other national parking operators, as L&R not only operates parking facilities under its four brand names, but also owns a significant national parking real estate portfolio in 12 states. The L&R Group of Companies has a significant airport, off-airport, government contracts division and a construction division which builds new state of the art parking facilities. L&R will maintain the System Parking brand name and management team, will expand System’s ability to enter into airport, off-airport, and government contracts, and will enable System to more actively participate in real estate ventures and construction opportunities. In turn, System will allow the L&R Companies to expand its operations into the hotel and hospital parking sectors with a strong market share in Chicago, Illinois.
“This acquisition combines one of the best known brand names in parking for the past 88 years, System Parking, Inc., with one of the largest parking real estate portfolios in the nation, the L&R Group of Companies. The result is a powerful business model of complete vertical integration, and a deeper national platform to service our clients from coast to coast,” said Chief Executive Officer David Damus. “This merger combines two complementary firms to create a new company that will be an innovative industry leader for years to come.”
“The merger with L&R is a transformational event in the 88-year history of System Parking,” said John Phillips, CEO of System Parking. The company will continue to be based at its current location in Chicago, Illinois. System Parking will be a wholly owned division of The L&R Group of Companies.
This acquisition will increase 5 Star’s size by 244 locations.
JVH
