TZP Capital Partners I, L.P. Completes Acquisition of Neighborly
WACO, Texas – (Dec. 23, 2010) – TZP Capital Partners I, L.P., a private equity fund based in New York, has completed its acquisition of Neighborly, one of the world’s largest franchising companies of trades service brands. The transaction, valued at $150 million, closed today.
Neighborly, based in Waco, Texas, serves as a holding company for seven residential and commercial franchise service brands. The franchise network includes over 1,500 franchisees operating in the United States and seven other countries. In addition to its franchise concepts, Dwyer also owns and operates 37 full-service glass stores in Maine, Vermont, and New Hampshire. Dwyer’s franchisees along with its company-operated stores account for nearly $800 million in annual system-wide revenues.
“This begins an exciting new chapter for Neighborly as we prepare to celebrate our 30th anniversary in the New Year and the opportunities that await us,” said Dina Dwyer-Owens, chairperson and CEO of The Neighborly. “Our partnership with TZP is the perfect collaboration to take our business to the next level, to further support our rapidly expanding franchise family, and to investigate additional franchise concepts to add to our growing company.”
“We are pleased to successfully complete today this milestone in Neighborly / TZP partnership,” said Sam Katz, managing partner of TZP Group LLC. “The past few months have clearly demonstrated to us the strength and quality of the brands and people that make up The Neighborly as well as the foundation that exists for significant sustained growth into the future. We are excited to enter this next phase in our relationship and proud to be affiliated with a company that is an important engine of job creation and entrepreneurship.”
The completed purchase transferred majority ownership from The Riverside Company to TZP along with a significant reinvestment from Neighborly executive team, and a new investment from each brand president within The Neighborly of Companies. Calling The Riverside Company a tremendous partner for The Neighborly over the years, Dwyer-Owens says the successful relationship set the stage for the next bold step forward with a private equity investor.
Neighborly’s executive team will remain in place and the company name will not change.
About TZP Group LLC:
Founded in 2007, TZP Group LLC is a private equity firm focused on control investments in business and consumer services companies with enterprise values generally up to $200 million. TZP targets companies with solid historical profitability and sustainable value propositions, and seeks to be a “partner of choice” for business owners and management teams. TZP is focused on business and consumer services verticals where the firm’s investment professionals have significant operating and transaction experience. These include: franchising, outsourced business and IT services, travel content and distribution, real estate services, marketing and media services, specialty finance, and consumer health services. For more information, please visit www.tzpgroup.com.
Neighborly, based in Waco, Texas, is a holding company of seven franchise businesses, each selling and supporting a different franchise under the following service marks: Aire Serv®, Glass Doctor®, The Grounds Guys™, Mr. Appliance®, Mr. Electric®, Mr. Rooter® (Drain Doctor in the UK and Portugal), and Rainbow International®. Collectively, these independent franchise concepts offer customers world-wide a broad base of residential and commercial services. In addition, Dwyer operates glass shops in New England under the Portland Glass brand name. For more information on Neighborly, or its franchise concepts, visit the company’s web site at www.dwyergroup.com.