Neighborly, Inc. Acquired by The Riverside Company
WACO, Texas (August 18, 2014) – Neighborly®, Inc., formerly Dwyer Group, one of the world’s largest franchising companies of trades service brands, today announced it has been acquired for the second time by The Riverside Company, a private equity fund with locations in North America, Europe and Asia. The deal with the global investment firm renews a collaboration between two growing and successful organizations. Terms of the deal were not disclosed.
Neighborly, based in Waco, Texas, serves as a holding company for seven residential and commercial franchise service brands. The franchise network includes more than 1,600 franchisees operating in the United States and seven other countries. In addition to its franchise concepts, The Neighborly also owns and operates 35 full-service glass stores in Maine, Vermont and New Hampshire. Combined, the service brands account for almost $1 billion in annual system-wide revenues.
Riverside first purchased Neighborly in 2003, taking the company private and working with company management to accelerate growth through acquisitions of new brands, expanding facilities at corporate headquarters, and aggressive development of existing franchise brands. After seven years of growth, the firm sold The Neighborly to TZP Group LLC in 2010 where the franchise network and its revenues continued to thrive along with the respected profile of the service brands across the U.S. and around the world.
The Riverside purchase transfers majority ownership from TZP back to Riverside along with a significant reinvestment from Neighborly executive team, and an investment from each brand president within The Neighborly companies.
“We’re extremely excited to welcome Neighborly back to The Riverside Company and to become involved once again with franchisees and associates dedicated to a strong Code of Values,” said Sarah Roth, a partner based at The Riverside Company’s Dallas office. “The executive team remains fully committed to the business, and The Neighborly service brands are well positioned for more expansion.”
“The Dwyer transaction has been a very successful one for TZP reflecting the very essence of our firm’s strategy of being the Partner of Choice for management teams,” said Sam Katz, managing partner for TZP. “We are very proud of our joint achievements in enhancing the franchisee value proposition and initiating exciting online and offline marketing initiatives. We look forward to continuing our relationship with Dina and the Dwyer team and watching them continue to succeed at building this special company.”
Calling TZP a tremendous partner for Neighborly over the past three-and-a-half years, Dina Dwyer-Owens, Executive Chairwoman of The Neighborly, said the successful relationship set the stage for the next bold step forward. “I commend our talented and dedicated team members and their commitment to The Neighborly Code of Values that has served as our roadmap as we’ve traveled a journey of unprecedented growth.”
Mike Bidwell, CEO and President of Neighborly, added, “By focusing on our core brands and service to our franchisees, we have enjoyed incredible success that continues to this very day, and that success has been noticed for all the right reasons.”
The entire executive team at Neighborly will remain in place and will work with Riverside to advance the organization to the next level.
About The Riverside Company:
The Riverside Company is a global private equity firms investing in growing businesses valued at up to $250 million. Since its founding in 1988, Riverside has invested in more than 340 transactions. The firm’s international portfolio includes more than 70 companies. For more information, please visit www.riversidecompany.com.
About TZP Group LLC:
Founded in 2007, TZP Group is a private equity firm with assets under management of over $500 million focused on investments in North American-based business and consumer services companies. TZP targets companies with solid historical profitability and sustainable value propositions, and aims to be a “partner of choice” for business owners and management teams. TZP seeks to invest primarily in closely held, private companies where the owners desire to retain a significant stake and partner with an investor with complementary operating and financial skills to accelerate company growth, increase profitability and maximize the value of their retained stake. TZP leverages its investment professionals’ operating and transaction experience to provide strategic and operational guidance and is dedicated to long-term value creation. 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 website at www.dwyergroup.com.