Incline Exits Lynx Franchising

Incline Equity Partners has sold LYNX Franchising, a multi-brand provider of business-to-business commercial services, to MidOcean Partners.

Incline acquired Premium Franchise Brands, the owner of the commercial janitorial cleaning brand JAN-PRO and residential cleaning brand Maid Right, in October 2016. In February 2019, LYNX completed the add-on acquisition of Intelligent Office and renamed Premium Franchise Brands as LYNX Franchising in May 2019.

JAN-PRO has more than $500 million in system-wide sales and has more than 8,000 unit franchisees and over 125 master franchisees in 41 states and 9 countries. Intelligent Office is a provider of staffed, temporary, and virtual office space used by mobile executives and small businesses. The company provides 24/7 access to offices and provides broadband internet, office furniture, telephones, and remote receptionists. Intelligent Office has more than $32 million in system-wide sales, with 59 locations throughout the United States and Canada.

LYNX’s Maid Right brand was sold to Premium Service Brands in February 2020 and in June 2020, LYNX added on again with the buy of FRSTeam (Fabric Restoration Service Team) which specializes in the restoration of clothing and textiles that have been damaged by smoke, fire, water, or mold. FRSTeam has just over 40 franchisees.

Today, Alpharetta, Georgia-based LYNX is led by CEO Russ Reynolds and has 225 franchised and company-owned locations across the JAN-PRO, Intelligent Office, and FRSTeam brands. LYNX backs its franchisees with branding, lead generation, technology, and corporate infrastructure support.

“Incline helped us grow the business through investments such as acquiring additional franchise brands, expanding the management team and implementing a comprehensive information technology system,” said Mr. Reynolds. “Incline provided the expertise and support that we needed to execute on these strategic initiatives. We are very grateful for their partnership.”

“We are proud to have helped transform the business from a commercial cleaning franchisor into a multi-brand franchise platform,” said Joe Choorapuzha, a partner at Incline. “In addition to expanding service capabilities through acquisition, we focused our efforts on developing the infrastructure and management team needed to scale operations. With the foundation in place that allowed LYNX to more than double in size over our hold period, the company is strategically positioned for its next phase of growth.”

“LYNX has an ‘A+’ management team,” said Eric Roth, a managing director at MidOcean. “Russ Reynolds and his senior team have an incredible track record of demonstrated strategic vision and sustainable growth, even in today’s challenging environment. We are very excited to partner with the LYNX organization to continue driving transformative growth across the three franchise brands.”

MidOcean invests in middle-market companies that are active in the business and consumer services sectors. In September 2018, the firm held a final close of its latest fund, MidOcean Partners V LP, with of $1.2 billion in limited partner commitments. MidOcean was founded in 2003 and is based in New York City.

“While there are multiple exciting organic opportunities ahead for LYNX’s three brands, there is considerable opportunity to grow through strategic M&A as well,” added Mr. Roth. “LYNX has demonstrated this capability through its acquisitions of FRSTeam and Intelligent Office. MidOcean is excited to support this strategy with additional capital over our investment horizon.”

Pittsburgh-based Incline Equity was formed in 2011 and is led by its senior partners, Jack Glover, Justin Bertram, and Leon Rubinov. In January 2020, Incline closed its fifth fund, Incline Equity Partners V LP, with nearly $1.2 billion of capital.

Harris Williams was the financial advisor to LYNX on this transaction.

© 2021 Private Equity Professional | January 6, 2021

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