Key Takeaways
- • Canadian private equity firm Birch Hill Equity Partners has acquired TruGreen, the Franklin, Tennessee-based lawn care provider, ending a 19-year relationship with Clayton, Dubilier & Rice (CD&R).
- • TruGreen operates more than 300 locations across the United States and Canada and employs more than 12,000 people, providing lawn care, tree and shrub maintenance, and pest services.
- • Birch Hill brings experience investing in route-based service businesses, a model the company says aligns with TruGreen's distributed local service network.
- • Goldman Sachs served as exclusive financial advisor to TruGreen and CD&R, while William Blair and TD Securities advised Birch Hill; Debevoise and Paul Weiss and Davies provided legal counsel.
- • President and CEO Kurt Kane credited CD&R with building the company's growth strategy and said the company's long-term goal is to become the best, fastest-growing, and most valuable lawn care company globally.
Summary
Birch Hill Equity Partners, a Canadian private equity firm, has acquired TruGreen, a Franklin, Tennessee-based lawn care services provider. The transaction concludes TruGreen's 19-year relationship with Clayton, Dubilier & Rice (CD&R), which supported the company through key periods of development and expansion and helped establish its current operating platform. The source article does not disclose a transaction value.
Founded in 1973, TruGreen operates more than 300 locations across the United States and Canada and employs more than 12,000 people. The company provides lawn treatments, tree and shrub care, and pest management to residential and commercial customers, with an emphasis on localized services tailored to property conditions and regional environmental characteristics.
Birch Hill's experience with route-based service businesses is central to the rationale for the deal. According to the company, such businesses rely on geographically distributed service networks, recurring customer relationships, and efficient scheduling, and operational improvements in these areas can raise productivity and customer retention. TruGreen expects Birch Hill's experience and resources to support its efforts to improve efficiency through scheduling, service coordination, and customer relationship management.
Kurt Kane, TruGreen's president and CEO, credited CD&R with helping develop the company's long-term growth strategy and expressed confidence in Birch Hill as its next investment partner. In a statement, Kane said Birch Hill would help the company "build from our strong foundation," and reiterated the goal of becoming "the best, fastest-growing and most valuable lawn care company in the world." The company said it will continue to emphasize customer satisfaction, employees, and service quality under its new ownership.
Goldman Sachs acted as exclusive financial advisor to TruGreen and CD&R, with Debevoise providing legal counsel to both. William Blair and TD Securities advised Birch Hill Equity Partners financially, and Paul Weiss and Davies served as its legal advisors.
Founded in 1973, TruGreen operates more than 300 locations across the United States and Canada and employs more than 12,000 people. The company provides lawn treatments, tree and shrub care, and pest management to residential and commercial customers, with an emphasis on localized services tailored to property conditions and regional environmental characteristics.
Birch Hill's experience with route-based service businesses is central to the rationale for the deal. According to the company, such businesses rely on geographically distributed service networks, recurring customer relationships, and efficient scheduling, and operational improvements in these areas can raise productivity and customer retention. TruGreen expects Birch Hill's experience and resources to support its efforts to improve efficiency through scheduling, service coordination, and customer relationship management.
Kurt Kane, TruGreen's president and CEO, credited CD&R with helping develop the company's long-term growth strategy and expressed confidence in Birch Hill as its next investment partner. In a statement, Kane said Birch Hill would help the company "build from our strong foundation," and reiterated the goal of becoming "the best, fastest-growing and most valuable lawn care company in the world." The company said it will continue to emphasize customer satisfaction, employees, and service quality under its new ownership.
Goldman Sachs acted as exclusive financial advisor to TruGreen and CD&R, with Debevoise providing legal counsel to both. William Blair and TD Securities advised Birch Hill Equity Partners financially, and Paul Weiss and Davies served as its legal advisors.
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