Deal Marks Largest Exit in Riverside's History
WACO, Texas, June 4, 2018 /PRNewswire/ -- Dwyer Franchising, LLC ("Dwyer Group"), one of the world's largest parent companies of home service brands, today announced it has been acquired by Harvest Partners, LP ("Harvest Partners" or "Harvest"), a New York-based private equity firm. The deal marks the fourth and largest private equity transaction of Dwyer Group in the franchise organization's history. Terms of the deal were not disclosed.
Dwyer Group, based in Waco, Texas, serves as the holding company for 20 service brands with a franchise network including more than 3,200 franchisees operating in the United States and eight other countries. The combined businesses offer residential and commercial customers with a community of professional services and account for approximately $1.7 billion in annual system-wide revenues.
Harvest Partners is an established middle-market private equity firm with a 35+ year history of investing in companies and partnering with high-quality management teams to support those businesses as they continue to grow to the next level.
"We are thrilled to partner with the Dwyer Group management team. They have built an excellent company and we look forward to providing additional financial and strategic resources to help them further build on their market leader status in the service franchise category," said Steve Eisenstein, Partner at Harvest Partners.
Harvest's purchase transfers majority ownership of Dwyer Group from The Riverside Company, a global investment firm that invested in Dwyer Group two separate times – taking the company private in 2003 and reacquiring the company in 2014.
"Dwyer Group is such a special company that we enjoyed two successful partnerships with them," said Riverside Partner Meranee Phing. "It's been deeply rewarding to work with a wonderful and talented team that shared our goals and values as we realized our vision for the company."
With each private equity transaction, Dwyer Group has expanded exponentially through add-on acquisitions of complementary franchise service brands and the organic growth of its existing service brands. In recent years, the company has expanded its franchisee-support structure significantly by adding 35% more corporate associates and new facilities at headquarters in the U.S. and Europe. During this time, Dwyer Group tripled in enterprise value and launched the overarching Neighborly brand to unify and market a growing roster of service brands that provide a seamless one-stop shop for consumers' home service needs.
"The incredible support of Riverside, the skill and resources of our team, and the successful completion of 11 add-on acquisitions to Dwyer Group during this second investment have dramatically shaped the trajectory of our growth. We intend to build on our dominant position as a leader in home services helping people repair, maintain and enhance their homes and properties," said Mike Bidwell, President and CEO of Dwyer Group. "We are in the strongest fiscal position with the largest global reach in our company's history. And Harvest brings capital, experience and enthusiasm to support our ambitions for continued growth."
About Harvest Partners:
Founded in 1981, Harvest Partners is a leading New York-based private equity investment firm pursuing management buyouts and recapitalizations of middle market companies in North America. Harvest focuses on acquiring profitable companies in the business services and consumer, healthcare services, industrial services, and manufacturing and distribution sectors. This strategy leverages Harvest Partners' more than 35 years of experience in financing organic and acquisition-oriented growth companies. For more information, please visit their website at www.harvestpartners.com.
About The Riverside Company:
The Riverside Company is a global private equity firm focused on making control and non-control investments in growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 530 transactions. The firm's international portfolio includes more than 80 companies.
About Dwyer Group®:
Founded in 1981 and based in Waco, Texas, Dwyer Group is a holding company of 20 service brands and supports franchise organizations under the umbrella brand Neighborly in the United States and Neighbourly in Canada. Neighborly® is a community of experts who repair, maintain and enhance properties united under one platform to better meet the needs of today's consumer. Collectively, these concepts offer customers a broad base of residential and commercial services. More information about Neighborly/Neighbourly, and its franchise concepts, is available at www.getneighborly.com and www.getneighbourly.ca, respectively. Learn more about Dwyer Group at www.dwyergroup.com.
SOURCE Dwyer Group, Inc.