Franchise brand portfolio includes Dream Doors, Glass Doctor, Mr. Rooter, Molly Maids and ShelfGenie
Global investment firm KKR will soon acquire Neighborly – the largest franchisor of home services, with 28 brands – from Harvest Partners. Neighborly franchisees bring a sweeping array of specialists to repair, maintain and improve their 10 million customers’ residential and commercial properties. Services include restoration after a crisis such as a flood or fire, electrical services, plumbing, painting, pest control, cleaning, HVAC system work, glass repairs, and home inspections.
Neighborly’s recession-resistant brands have posted healthy growth over the past decade. Throughout the franchise industry, Neighborly brands are known for their affordability, professional standards and fun, supportive culture. The Waco, Texas-based holding company has more than 4,800 franchises located in the United States and eight other countries.
In a company-issued statement, Neighborly President and CEO Mike Bidwell said the acquisition “is a strong validation of our business-building strategy and differentiated ability to deliver essential home services. We are excited to embark on our next chapter of growth with KKR’s support and global expertise, and look forward to continuing to be a partner of choice for both customers and franchise owners in the years to come.”
In terms of day-to-day operations, nothing will change; it will be business as usual across the Neighborly network.Mike Bidwell
As a result of this acquisition, Bidwell says that Neighborly® will benefit from KKR’s global resources, operational expertise, and extensive experience in the consumer space to support the company’s long-term growth trajectory. “Our management team will work closely alongside KKR to continue executing on our organizational mission of enriching people’s lives by delivering amazing experiences both to our customers and to the franchise owners who invest in our brands. In terms of day-to-day operations, nothing will change; it will be business as usual across the Neighborly network.”
Felix Gernburd, KKR managing director, said, “Neighborly stands out for its differentiated strategy of bringing together adjacent services under a diversified and tech-enabled platform, and – most importantly – for its unrivaled dedication to customer service. We are thrilled to be investing in the Neighborly team as they continue to execute on their mission: enriching people’s lives by delivering amazing experiences.”
In the same statement, Nicholas Romano, partner at Harvest Partners, predicted a rosy future for Neighborly, saying that “thoughtful investments in technology and human capital have resulted in a platform positioned for accelerated growth in the coming years.” Romano, Steve Eisenstein and David Schwartz led Harvest’s Neighborly investment team.
Neighborly was founded in 1981 as the Dwyer Group by Don Dwyer. At that time, he had just one company, Rainbow International, a carpet cleaning and coloring business. His daughter, Dina Dwyer Owens served as CEO for 15 years.
Neighborly brands include:
- Aire Serv, providing installation, maintenance, and repair of heating, ventilation, air conditioning and indoor air quality systems.
- Countrywide Grounds Maintenance, whose services include commercial grass cutting, landscape maintenance and sports grounds upkeep.
- Dream Doors, a specialist in replacement kitchen cabinet doors, counter tops, sinks and appliances.
- Dryer Vent Wizard, a dryer-vent cleaning franchise.
- Five Star Painting, which does commercial and residential work.
- The Grounds Guys, a landscaping, lawn care and snow removal franchise.
- HouseMaster, which does home inspections.
- Molly Maid housekeeping service.
- Mosquito Joe, which gets rid of mosquitoes for residential and commercial clients.
- Mr. Appliance full-service appliance care and repairs (commercial and residential).
- Mr. Electric commercial and residential electric installation and repairs.
- Mr. Rooter, a full-service plumbing and drain-cleaning franchise.
- Precision Door Service, which designs, installs and repairs garage doors and automatic openers.
- Portland Glass, providing glass services for vehicles, homes and businesses.
- ProTect Painters, a residential paint company.
- Real Property Management, a single-family property management business.
- ShelfGenie, a specialist in custom home storage solutions such as pullout shelves for cabinets.
- Window Genie, providing window cleaning, tinting and more.
The acquisition by KKR is expected to be completed during the first quarter of this year. Terms were not disclosed.