KKR-backed Brickman and MSD-backed ValleyCrest agree to merge

Brickman, a portfolio company of KKR and ValleyCrest, which is backed by MSD Capital, have agreed to merge. No financial terms were disclosed for the transaction, which is expected to be completed by mid-2014. KPMG provided financial advice to Brickman while Moelis & Company served as financial advisor to ValleyCrest. Brickman, which is headquartered in Rockville, Maryland, is a provider of landscape maintenance and snow removal services in the U.S. And, based in Calabasas, Calif., ValleyCrest is an integrated landscape services firm.

PRESS RELEASE

ROCKVILLE, MD and CALABASAS, CA – May 21, 2014 – The Brickman Group. Ltd. LLC (“Brickman”) and ValleyCrest Companies, LLC (“ValleyCrest”) announced today that they have entered into a definitive merger agreement, creating a world-class landscape and snow services company with a talented and engaged team delivering customized solutions for commercial clients throughout the U.S.
Today, Brickman and ValleyCrest are both leaders in landscape and snow services with highly complementary capabilities and geographic footprints. They will continue to serve trusted relationships in diversified client environments such as corporations, universities, hospitals, hotels & resorts, parks & public spaces and housing communities. These include some of the most respected companies and renowned institutions in the country.
“We are excited to bring together two family founded industry pioneers to continue shaping the industry while caring for client relationships that have been built over decades,” said Andrew Kerin, Chief Executive Officer of Brickman. “We share common values and have each achieved local, regional and nationwide success by putting our people and clients at the center of all that we do. Together we will be able to offer clients even more innovative and customized solutions while also providing our extremely talented teams greater opportunities for professional growth and development.”
Combined, Brickman and ValleyCrest will have more than 20,000 team members with the commitment and deep horticultural knowledge to design, build and maintain beautiful landscapes. With 140 years of industry experience, the combined organization will be extremely well positioned to meet client needs at the local level and across the U.S. The company will have a strong platform to serve clients throughout the lifecycle of their projects – from design to construction to maintenance – and across all seasons. Combined annual revenues are approximately $2 billion.
Roger Zino, Chief Executive Officer of ValleyCrest, said, “We have known and respected one another for many years, and have always shared a commitment to superior customer service, a relentless focus on employee safety and support of the environment and communities in which we live and work. This is an ideal match that will advance the landscape profession by bringing together a passionate community of the best trained and knowledgeable landscape professionals in the country.”
Following the transaction close, Kerin will be the Chief Executive Officer of the new company and Zino will become Vice Chairman. The company will continue to maintain its primary locations in Rockville, MD and Calabasas, CA.
The merger, which is subject to customary closing conditions, is expected to close by mid-2014. Brickman is currently owned by KKR, and ValleyCrest is currently owned by affiliates of MSD Capital, L.P. Following the close, KKR will have majority ownership of the combined company and MSD Capital will retain a significant minority ownership interest.
KPMG LLP served as financial advisor to Brickman and Simpson Thacher & Bartlett LLP, Morgan Lewis & Bockius LLP and Dechert LLP served as legal counsel. For ValleyCrest, KPMG LLP performed accounting and tax work, Moelis & Company served as financial advisor, and Kaye Scholer LLP served as legal counsel.
About The Brickman Group
Founded in 1939, The Brickman Group, Ltd. is the leading provider of landscape maintenance and snow removal services in the U.S. Its landscape maintenance services include lawn care, flower planting and care, and tree and shrub pruning, among others. With nearly 10,000 employees nationwide, Brickman serves a diversified base of over 10,000 clients, including some of the most well-respected companies and institutions in the U.S. For more information about Brickman, please visit www.brickman.com.
About ValleyCrest Companies
Founded in 1949, Calabasas, Calif.-based ValleyCrest Companies is the nation’s largest integrated landscape services company with 11,200 employees and operations in more than 150 locations nationwide. ValleyCrest, which ranks on Forbes Magazine’s list of America’s 500 Largest Private Companies, is commissioned by developers, commercial real estate owners, public agencies, property managers and home builders to help create, build or maintain some of the world’s extraordinary natural environments. For more information about ValleyCrest, please visit www.valleycrest.com. ValleyCrest is the WORKFORCE of NATURE®.

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