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Letter to the Editor

Allstate Acquires Sterling Collision Centers

Northbrook, Ill. -- The Allstate Corporation has announced that it has acquired Sterling Collision Centers Inc., a leader in the auto body repair industry. Sterling operates a network of 39 collision repair stores in seven states and nine metropolitan locations.

"This acquisition is part of Allstate's effort to create a differentiated customer experience coupled with increased efficiencies and delivery of value to the policyholder," said George Ruebenson, Allstate vice president for claims and new chairman of the Sterling board of directors.

"Sterling stores are very different than the typical auto collision repair shop," continued Ruebenson. "On average, they are three times larger and repair four to five times more cars every month. Consistent service and repair quality are the hallmarks of Sterling."

"We are very excited about this new relationship," said Sterling CEO Jonathan McNeill. "Allstate will be a terrific partner. They share our vision of expanding our model to other markets and are equally committed to customer satisfaction. Like Sterling, they understand that it is good business to reduce repair times and improve the facilities' efficiencies while delivering superior customer service."

According to Ruebenson, the Sterling brand and their leadership team will remain in place and no changes are planned. "One of the reasons Allstate acquired Sterling was because of the strength of the management team," continued Ruebenson.

In the near term, according to Allstate's press release, the operation of the Sterling stores will change very little. They will continue to serve their current customer base. Longer term, as new Sterling stores are created, they will be designed to maximize the service benefits to Allstate customers.

"The greatest benefit Allstate and its customers get in this transaction is the improved processes. Together, Allstate and Sterling will eliminate the redundancies that exist in today's auto collision repair process. Customers will now find themselves the beneficiaries of a coordinated repair process with a dual focus on their requirements," added Ruebenson.

"For example, Allstate's inspection and estimating processes help to create efficiencies in the repair process while improving the policyholder's overall experience. This acquisition enables us to better serve the interests of the policyholder while realizing efficiencies in making estimates and repairing automobiles."

"The acquisition gives Allstate customers easy access to a leader in the auto collision repair industry," states the press release. "While the choice of repairer is ultimately up to the customer, the process of finding a high quality repairer does not have to rest solely on the shoulders of the customer."

Sterling will operate as a separate subsidiary of Allstate Non-insurance Holdings, Inc. and will not be owned by the Allstate Insurance Company. The financial terms of the agreement were not disclosed.

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