Private Equity Firm Backs Franchise Growth Strategy in Central Pennsylvania
The private equity firm Broad Sky Partners has acquired Punctual Pros, which operates Benjamin Franklin Plumbing, Mister Sparky electric service and One Hour Heating & Air Conditioning franchise units in Central Pennsylvania. Punctual Pros is a large franchisee within the portfolio of Authority Brands, a home services franchisor with 2,800 territories serving North Americans. Broad Sky Partners, headquartered in New York City, specializes in middle-market business and consumer services.
Private equity firms have been fans of investing in franchises during the past several years, as noted by the United States Private Equity Council (USPEC). The reason is that the success rate of private equity investments in franchises is 91%, according to USPEC, while independent start-up businesses notched only a 20% success rate. “Success” was defined as the business still being in operation after seven years.
Reaction to the Deal
In a news release regarding the transaction, Punctual Pros founder and CEO Matt Buckwalter said the “partnership is just the beginning of our company’s journey to build Punctual Pros as the premier home services provider in the mid-Atlantic region. … We look forward to partnering with the Broad Sky team and know their expertise will add significant value as we continue to grow our footprint through M&A [mergers and acquisitions].”
Jonathan Marlow, a partner at Broad Sky, said the Punctual Pros investment reflects “Broad Sky Partners’ thematic investment strategy within essential sectors of the economy where our capital, resources and operational excellence can drive growth and deliver value to both customers and stakeholders. We were attracted to the strength of [Punctual Pros’] leaders Matt Buckwalter and Aaron Buckwalter who, along with their team, have driven key operational metrics and cultivated a values-driven, people-first culture. We look forward to supporting the Punctual Pros team.”
Punctual Pros was established in 1958 as The Rohrer Co. Today it serves 240 ZIP Codes and has plans to expand via its partnership with Broad Sky. Mark Dawson, executive vice president of service trades brands at Authority Brands, said the Punctual Pros team has “worked very hard over the years to build an outstanding business model that will create value for years to come.”
About Authority Brands
Based in Columbia, Md., the Authority Brands umbrella consists of 16 home services franchises operated by more than 1,200 franchise owners. Authority Brands pledges strong marketing, technology and operational support to its franchisees.
In addition to Benjamin Franklin Plumbing, Mister Sparky and One Hour Heating & Air Conditioning, Authority Brands are America’s Swimming Pool Co., The Cleaning Authority, Color World Painting, DoodyCalls pet waste removal service, DRYmedic Restoration Services, Homewatch CareGivers, The Junkluggers, Lawn Squad, Monster Tree Service, Mosquito Squad, Screenmobile advertising, STOP Restoration and Woofie’s dog walking.
Terms of the acquisition were not revealed. Boxwood Partners was sell-side adviser; Harris Williams was buy-side adviser. Greenberg Traurig served as legal adviser to Broad Sky. Trout CPA acted as accounting adviser, and Barley Snyder was legal adviser to Punctual Pros.
