The Dwyer Group, one of the world’s largest parent companies of home service brands, has announced it has been acquired by Harvest Partners, a New York-based private equity firm.
The deal marks the fourth and largest private equity transaction of Dwyer Group in the franchise organisation’s history. Terms of the deal were not disclosed.
Dwyer Group, headquartered in Waco, Texas, with offices in Banbury and Manchester in the UK, serves as the holding company for 20 service brands with a franchise network including more than 3,200 franchisees operating in the UK, US and seven other countries. The combined businesses offer domestic and commercial customers with a community of professional services and account for approximately £1.3billion in annual system-wide revenues.
Harvest Partners is an established middle-market private equity firm with over 35 years’ experience of investing in companies and partnering with high-quality management teams to support those businesses as they continue to grow to the next level.
Steve Eisenstein, partner at Harvest Partners, says: "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."
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," says 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 realised 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 per cent more corporate associates and new facilities at headquarters in the US and offices in the UK and Europe. During this time, the Dwyer Group tripled in enterprise value and launched the overarching Neighbourly brand to unify and market a growing roster of service brands that provide a seamless one-stop shop for consumers’ home service needs.
Mike Bidwell, president and CEO of Dwyer Group, says: "The incredible support of Riverside, the skill and resources of our team, and the successful completion of 11 add-on acquisitions, including three in the UK (Drain Doctor, Bright & Beautiful and Countrywide Grounds Maintenance) 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 services helping people repair, maintain and enhance their homes and businesses.
"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."