Key Takeaways
- • Levine Leichtman Capital Partners (LLCP), a Los Angeles-based private equity firm, partnered with management to acquire Five Star Franchising from Princeton Equity Group; financial terms were not disclosed.
- • Five Star Franchising operates a home services franchise platform with more than 870 locations across the United States and Canada, spanning eight brands in bathroom remodeling, window coverings, biohazard cleanup, property restoration, mosquito control, flooring, and yard displays and holiday lighting.
- • The deal is LLCP's sixth platform investment through Levine Leichtman Capital Partners VII, L.P. and its 19th franchising-sector investment.
- • Co-founders Scott Abbott (CEO) and Chad Jones (COO) will continue to lead the business, with LLCP planning growth through organic franchise development, same-store sales improvement and additional brand acquisitions.
- • The transaction concludes Princeton Equity Group's ownership, which began in 2021.
Summary
Levine Leichtman Capital Partners (LLCP), a Los Angeles-based private equity firm, has partnered with management to acquire Five Star Franchising from Princeton Equity Group, according to the publisher's report. Financial terms were not disclosed, and the companies did not disclose Five Star's revenue, transaction valuation or management's post-deal ownership stakes.
Founded in 2004 and headquartered in Springville, Utah, Five Star Franchising operates more than 870 locations across the United States and Canada through eight home services brands: Five Star Bath Solutions, Gotcha Covered, Bio-One, 1-800 Packouts, Mosquito Shield, Card My Yard, Five Star Flooring and Decorate With Lights. The company also operates ProNexis, a digital marketing and lead-generation provider that supports franchise operators across its network. During Princeton Equity Group's ownership, which began in 2021, Five Star expanded through multiple acquisitions and built centralized services for franchisees.
Existing management, led by co-founders Scott Abbott, CEO, and Chad Jones, COO, will continue to run the business. Matthew Frankel, managing partner at LLCP, said the firm looks forward to leveraging its franchising experience to expand unit count, drive same-store sales growth and acquire additional brands. Greg Flaster, senior managing director at LLCP, said Five Star's franchise development infrastructure and marketing capabilities provide a foundation for continued expansion. Abbott said the company will build on ProNexis and its purchasing network to improve operating performance and pursue organic and acquisition-led growth.
The acquisition is LLCP's sixth platform investment through Levine Leichtman Capital Partners VII, L.P. and its 19th investment in the franchising sector. Across franchising, LLCP has backed 38 brands in home services, senior care, food service and wellness, including SYNERGY HomeCare, Lawn Doctor, Tropical Smoothie Cafe, Senior Helpers and Hand & Stone. The firm and its affiliates have managed approximately $20.6 billion in capital across nearly 20 funds and invested in roughly 120 portfolio companies, and currently manage approximately $15 billion in assets.
Kirkland & Ellis LLP and Greenberg Traurig LLP served as legal counsel to LLCP. Robert W. Baird & Co. advised Five Star Franchising.
Founded in 2004 and headquartered in Springville, Utah, Five Star Franchising operates more than 870 locations across the United States and Canada through eight home services brands: Five Star Bath Solutions, Gotcha Covered, Bio-One, 1-800 Packouts, Mosquito Shield, Card My Yard, Five Star Flooring and Decorate With Lights. The company also operates ProNexis, a digital marketing and lead-generation provider that supports franchise operators across its network. During Princeton Equity Group's ownership, which began in 2021, Five Star expanded through multiple acquisitions and built centralized services for franchisees.
Existing management, led by co-founders Scott Abbott, CEO, and Chad Jones, COO, will continue to run the business. Matthew Frankel, managing partner at LLCP, said the firm looks forward to leveraging its franchising experience to expand unit count, drive same-store sales growth and acquire additional brands. Greg Flaster, senior managing director at LLCP, said Five Star's franchise development infrastructure and marketing capabilities provide a foundation for continued expansion. Abbott said the company will build on ProNexis and its purchasing network to improve operating performance and pursue organic and acquisition-led growth.
The acquisition is LLCP's sixth platform investment through Levine Leichtman Capital Partners VII, L.P. and its 19th investment in the franchising sector. Across franchising, LLCP has backed 38 brands in home services, senior care, food service and wellness, including SYNERGY HomeCare, Lawn Doctor, Tropical Smoothie Cafe, Senior Helpers and Hand & Stone. The firm and its affiliates have managed approximately $20.6 billion in capital across nearly 20 funds and invested in roughly 120 portfolio companies, and currently manage approximately $15 billion in assets.
Kirkland & Ellis LLP and Greenberg Traurig LLP served as legal counsel to LLCP. Robert W. Baird & Co. advised Five Star Franchising.
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