Investcorp has agreed to sell The Wrench Group, a provider of home maintenance and repair services, to Leonard Green & Partners. No financial terms were disclosed. Jefferies LLC was financial adviser to Wrench on the deal.
New York, April 8, 2019 – Investcorp, a leading global provider and manager of alternative investment products, today announced it has agreed to the sale of The Wrench Group (“Wrench” or “the Company”), a national leading provider of home maintenance and repair services, to Leonard Green & Partners (“LGP”), a Los Angeles-based private equity firm. The terms of the transaction were not disclosed.
Investcorp, in partnership with management, formed Wrench in 2016. At the time of acquisition, Wrench was comprised of four like-minded, locally operated companies with market leading positions in Atlanta, Dallas, Houston and Phoenix. The management owners’ collaborative approach and entrepreneurial spirit helped transform the business from a group of local businesses to a leading integrated national platform. Today, Wrench is a market leader with divisions in Atlanta, Dallas, Denver, Houston, Phoenix, Sarasota and Tampa markets.
“This transaction was the first acquisition after we announced our growth strategy in 2015. It illustrates our ability to execute on every step of the value creation cycle from putting the right management team in place, institutionalizing key processes and capitalizing on both organic and inorganic strategic growth initiatives for the company and ultimately our clients and shareholders,” said Mohammed Alardhi, Executive Chairman, Investcorp. “We will continue to adopt this entrepreneurial spirit supported by a strong global institutional base across our multi-asset class offerings.”
Ken Haines was elevated to CEO in 2016 and, under his leadership, Wrench has achieved outstanding growth through gaining market share, expanding service offerings into adjacent home services, and completing four strategic acquisitions in attractive markets. During this time, Ken also built an executive team that supports the field operations and is well positioned to complement their efforts to achieve the next evolution of Wrench’s growth.
Ken Haines, CEO of Wrench said, “Investcorp has been a great partner and given us valuable insights that have helped grow our business significantly. We’ve greatly enjoyed the experience working with their dedicated team to expand our services and national footprint and are excited to continue to execute our strategic growth plans with LGP.”
“Over the last three years, we have had the privilege of working with Ken and the entire Wrench leadership team to build one of the nation’s leading home services businesses,” said Dave Tayeh, Head of Private Equity North America, Investcorp. “We want to thank Ken and the Wrench team for being outstanding partners and believe LGP is the ideal partner for them going forward.”
In the U.S., Investcorp looks to invest in high growth and cash flow generative mid-sized companies with experienced management teams. Investcorp focuses its investment efforts on six services sectors including Technology Enabled Services, Knowledge & Professional Services, Industrial Services, Distribution & Logistics, Data & Information Services and Consumer & Retail. Recently, Investcorp partnered with the founder-owner to acquire Health Plus Management, a provider of business management and operations services for independent physician practices in the physical medicine and rehabilitation market. Previously, Investcorp had also made an investment in United Talent Agency, a leading global talent and entertainment company and ICR, a leading strategic communications and advisory firm.
Jefferies LLC acted as exclusive financial advisor to the Company.
Investcorp is a leading global manager of alternative investments. Led by a new vision, Investcorp has embarked on an ambitious, albeit prudent, growth strategy. The Firm continues to focus on generating value through a disciplined investment approach in four lines of business: private equity, real estate, absolute return investments and credit management.
As at December 31, 2018, Investcorp had US$22.5 billion in total AUM, including assets managed by third party managers and assets subject to a non-discretionary advisory mandate where Investcorp receives fees calculated on the basis of AUM.
Since its inception in 1982, Investcorp has made over 185 Private Equity deals in the U.S., Europe, the Middle East and North Africa region and Asia, across a range of sectors including retail and consumer products, technology, business services and industrials, and more than 600 commercial and residential real estate investments in the US and Europe, for in excess of US $59 billion in transaction value.
Investcorp employs approximately 400 people across its offices in Bahrain, New York, London, Abu Dhabi, Riyadh, Doha, Mumbai and Singapore. For further information, including our most recent periodic financial statements, which details our assets under management, please refer to:
About The Wrench Group
The Wrench Group is a national leader in home repair, replacement and maintenance services specializing in heating, ventilation and air conditioning, plumbing and electrical services. The Company collectively serves over 325,000 customers in the Atlanta, Dallas, Denver, Houston, Phoenix, Sarasota and Tampa metropolitan areas. The regions have each developed strong reputations with brands that date back to the 1940s. For more information, please visit: www.wrenchgroup.com www.wrenchgroup.com