TZP Group has acquired Home Brands Group, the parent company of Re-Bath, a bathroom remodeling franchise. No financial terms were disclosed. Kirkland & Ellis LLP and Kaufmann Gildin & Robbins LLP served as legal advisors to TZP on the deal.
NEW YORK, Nov. 10, 2021 /PRNewswire/ — TZP Group LLC, (“TZP”), a multi-strategy private equity firm, today announced that it and a group of co-investors acquired Home Brands Group Holdings Inc., the parent company of Re-Bath, the nation’s largest complete bathroom remodeling franchise, which has grown significantly over the past two years. Founded in 1978, Re-Bath delivers expert, affordable and effortless bathroom remodeling solutions that transform bathrooms in days. The company offers an exclusive remodel process to ensure that customers get the highest-quality, functional products for their homes.
“We are thrilled to partner with Re-Bath and its terrific management team serving a group of committed franchisees across the U.S.,” said Vlad Gutin, Partner at TZP. “We believe Re-Bath’s unique, high-quality service offering, loyal customers, best-in-class products of leading brands and partnerships with premier, national retailers coupled with TZP’s relationships and resources can accelerate Re-Bath’s growth.”
According to a study by the Joint Center for Housing Studies at Harvard University, while the U.S. economy shrank in 2020, spending on home improvements and repairs is estimated to have increased to nearly $420 billion.
“After reviewing a number of opportunities in one of TZP’s target sectors of residential home services, we are confident that Re-Bath’s fast-growing, customer-centric franchise and solid value proposition for consumers and franchisees stands out among service providers and franchised brands,” said Will Callahan, Principal at TZP.
Re-Bath has demonstrated solid growth in 2020 and 2021. Last year, the company generated impressive same-store sales growth alongside multiple franchise openings. So far in 2021, with system wide sales increasing nearly 80% YOY, Re-Bath has signed 17 new franchise agreements and projects signing 20 by year-end.
“We are excited to embark on our next chapter of growth with TZP’s investment representing a strong validation of the growth and success we’ve achieved, and where we are headed,” said Re-Bath CEO, Brad Hillier. “Through this investment, we will be able to leverage TZP’s expertise and resources to further expand our brand to a wider audience and better serve our customers, franchisees, partners and employees. With continued investments in technology and human capital, our company will be well positioned for accelerated growth in the coming years.”
TZP believes its investment will help Re-Bath capture an even larger share of the growing bathroom remodeling market. By leveraging TZP’s expertise and resources, while maintaining its focus on partnering with a growing number of exceptional franchisees, strengthening world-class corporate support, maximizing opportunities with national retail partners and enhancing customer service with new technology and innovation, Re-Bath will move closer to its goal of becoming a billion-dollar company and a household name in its industry.
Kirkland & Ellis LLP and Kaufmann Gildin & Robbins LLP served as legal advisors to TZP.
About TZP Group
TZP Group, a multi-strategy private equity firm managing approximately $2 billion across its family of funds, including TZP Capital Partners, TZP Small Cap Partners, TZP Strategies and TZP Strategies Acquisition Corp., is focused on control, growth equity and structured capital investments in business sectors, technology and consumer companies. Founded in 2007, TZP targets companies with solid historical performance 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 in which the owners and management 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 investment experience to provide strategic and operational guidance and is dedicated to long-term value creation. For more information, please visit www.tzpgroup.com.