Boxwoods Strategic Guidance Leads to Successful Transaction, As Investors Turn Focus Towards Residential & Commercial Service Franchisee Opportunities
JUPITER, FL / ACCESSWIRE / August 22, 2023 / Boxwood Partners is pleased to announce the sale of Trades Holding Company, LLC ("Trades"), a leading franchisee of Mr. Rooter® Plumbing, a Neighborly® company, and Mr. Electric®, a Neighborly company, in Ohio, to CPC, a private holding company formed to buy, build, and hold businesses with a long-term time horizon.
Boxwood Partners, a leading boutique middle-market investment bank known for its deep experience with entrepreneur and family-owned businesses, acted as the exclusive sell-side advisor to Trades Holding Company on the transaction. The transaction was led by Brian Alas, Managing Director, Dan Martinson, Vice President, and Mason Barrett, Analyst. The terms of the deal were not disclosed.
Since 2019, Boxwood has represented more than 20 franchisors as the exclusive sell-side advisor. The Trades transaction marks Boxwood's second residential service franchisee transaction, indicative of recent trends within the sector.
"Residential and commercial services continue to be a very attractive sector for investors. Similar to activity previously seen in the fitness and restaurant industries, Trades demonstrates how private equity has shifted to opportunities within the franchisee base to find ways to be a part of top tier franchisors," said Brian Alas, Managing Director of Boxwood Partners. "Trades represents an opportunity to invest not only in a recession-resilient end market, but also stands to benefit from the broader exposure to Neighborly's portfolio of service brands."
Founded in 1994 by Jim Eble, Trades Holding Company is a franchisee operator of Mr. Rooter (plumbing) and Mr. Electric (electrical) residential home servicing brands and operates Right Restoration, an independent restoration business solely focused on water damage. Trades is one of the largest Mr. Rooter franchisee operators, employing 250 full-time employees, including 215 trade professionals, across three markets in Ohio.
"From the very beginning there was strong cultural and strategic alignment with CPC, with the mutual understanding that value creation comes from the commitment to the personal, professional, and financial development of all Trades employees," said Dan Martinson, Vice President of Boxwood Partners. "The Company's partnership with CPC will provide the necessary resources to promote both growth and durability in the years to come."
"We are extremely appreciative of all the hard work and guidance provided by the Boxwood team throughout the entire process," said Megan McKay, President of Trades. "Their experience and knowledge of both residential services and franchising helped us identify the ideal partner for our business, including one that was aligned with our vision and values for Trades Holding Company.CPC's perpetual investment horizon was very attractive to my father and me, as it allows for long-term decision making to be the top priority."
"Trades technician-centric business creates a foundation for the company's sustainable growth and employee retention which goes hand in hand with CPC's ongoing focus on the Five Key Battles™. This focus, along with the shift in consumer preferences to ‘Do-It-For-Me' makes Trades a great addition to CPC's family of companies," said Wiley Curran, Chairman of CPC. Trades is the third acquisition for CPC, LLC.
Sandy Bodeau, Liz Dillon and Eli Bensignor from Lathrop GPM served as legal counsel to Trades Holding Company while FORVIS acted as the accounting advisor.
About Boxwood Partners
Boxwood Partners, LLC is a boutique investment bank based in Jupiter, Florida with offices in Richmond, Virginia. Boxwood Partners combines a unique blend of senior-level transaction advisory, business operating experience, and proven process execution skills to give its clients a distinct advantage in the market. The firm's extensive relationships within the global capital and buyer communities (including U.S. and international private equity groups, corporations, and lenders) and other important transaction-related service providers such as consultants, attorneys, and accountants, ensure that the firm's clients receive the attention, service, and results they deserve. For more information about Boxwood Partners, please visit www.boxwoodpartners.com.
About CPC
CPC is owned by large family offices and successful entrepreneurs that are collectively aligned around long-term decision making and wealth creation. It was formed from the merging of Curran Companies' and C3 Capital's management teams and seeks to deploy $600MM to $700MM into lower middle market businesses over the next five years. CPC does not use enterprise leverage to fund acquisitions, instead focusing management teams to excel in the Five Key Battles™: People, Systems and Processes, Execution, Customer Intimacy, and Product Leadership. Prior to forming CPC, the management team invested in more than 100 businesses covering a wide variety of industries. Learn more at www.cpc.llc/.
About Trades
Founded in 1994 by Jim Eble, Trades Holding Company is a franchisee operator of Mr. Rooter (plumbing) and Mr. Electric (electrical) residential home servicing brands and operates Right Restoration - an independent restoration business solely focused on water damage. Trades is dedicated to its technicians and committed to providing a superior journey from apprentice to retirement.
Contact:
Taylor Nortman
Fishman Public Relations
[email protected]
SOURCE: Boxwood Partners, LLC