NORTHBROOK -- Allstate said it will sell its Sterling Collision Centers business to Service King Collision Repair Centers. Terms of the transaction were not announced.
Allstate purchased Sterling Collision Centers in 2001. Sterling operates 62 collision-repair facilities in 16 states and has 1,200 employees, the company said in a release.
"This sale reflects a continued focus on investing capital where we have a competitive advantage in providing unique offerings to the four consumer insurance segments," said Thomas J. Wilson, Allstate chairman, president and CEO. "Our ownership of Sterling has deepened the company's understanding of the collision-repair business and helped us build industry relationships. The transition for our customers and Allstate agencies will be seamless."
Service King has been repairing Allstate customers' vehicles for more than 30 years and is part of Allstate's Good Hands Repair Network of more than 3,200 prequalified repair shops across the country that offer excellent service and high-quality options for collision repair, Allstate said in the statement.
The sale is expected to close by the end of the second quarter of 2014 and will result in a small after-tax gain, the company said.