L Catterton has agreed to acquire a majority equity interest in LTP Home Services Group, a residential plumbing and HVAC services platform, from Thompson Street Capital Partners (TSCP). TSCP first invested in LTP Home Services in February 2020 and has chosen to maintain a minority interest in the company in partnership with L Catterton.
LTP Home Services was founded in 1996 by Len Bush and operates across the Mid-Atlantic and Southeast regions under six brands including its flagship brand, Len the Plumber. The company is led by CEO Jeff Cooper and is headquartered in Baltimore.
During TSCP’s ownership term the firm closed several add-on acquisitions including Georgia-based Canady’s Heating, Air, and Plumbing (March 2022); New Jersey-based Russo Brothers (December 2021); Maryland-based Service Today Heating & Cooling (November 2021); Maryland-based Larry & Sons Plumbing & Heating (April 2021); and Pennsylvania-based Nefsville Plumbing & Heating (April 2021).
“LTP is a case study in what can be achieved with a buy-and-build acquisition strategy,” said Jeff Aiello, a managing director at TSCP. “When we partnered with Jeff Cooper and his management team, it was clear that LTP had the executive talent to grow organically and continue to execute on their proven geographic greenfield expansion playbook. By completing six add-ons and driving substantial organic growth, the business has quadrupled during TSCP’s ownership. We are excited to continue our partnership with LTP as minority owners and look forward to seeing the next phase of growth with L Catterton’s involvement.”
“We’re excited to partner with L Catterton to continue our accelerated growth and take LTP to the next level as a leading residential services platform,” said Mr. Cooper. “L Catterton brings significant experience in supporting the scaling and growth of consumer services brands, and together, we look forward to capitalizing on a robust pipeline of opportunities to expand our differentiated offering. With L Catterton’s partnership, we will continue to build on our multiple initiatives to scale and diversify the business and remain highly focused on executing our acquisition strategy.”
“The residential services category is highly fragmented and at an inflection point where technology and digitalization are expected to drive significant consolidation,” said Matt Lischick, a partner at L Catterton. “Positioned in desirable, high-density markets with world-class technicians, a reputation for excellence, and a proven acquisition track record, LTP is a truly unique platform with a disruptive combination of growth opportunities. We look forward to working with LTP’s exceptional management team as they continue to rapidly scale their business.”
Greenwich, Connecticut-headquartered L Catterton invests from $50 million to $400 million of capital in consumer-focused companies. Areas of specific interest include food and beverage, retail and restaurants, consumer products and services, consumer health, and media and marketing services. The firm was founded in 1989 and has raised over $30 billion of equity capital across seven funds.
St. Louis-based TSCP invests in companies with EBITDA between $5 million and $25 million. Sectors of interest include healthcare and life science services, software and technology services, and business services and engineered products. In July 2018, the firm held a final closing of its fifth fund, Thompson Street Capital Partners V LP, at its hard cap of $1.15 billion.
TSCP is an active investor in the residential services sector. Last November, the firm partnered with pest control industry executive Jay Keating to form PestCo Holdings as a first step to begin a consolidation of the fragmented pest control sector. According to TSCP, pest control is a non-discretionary service for homeowners similar to plumbing and HVAC, but also a health and safety-
driven concern for commercial applications such as hotels, restaurants and other facilities. Mr. Keating has been active in the pest control sector for more than 25 years beginning as a service technician and rising to become the vice president of operations and chief operating officer at Sears Pest Control in 1998. From 2001 to 2014, Mr. Keating was active in operations and sales for Orkin Pest Control. PestCo’s targets include residential and commercial pest control companies that exterminate mosquitoes, rodents, termites and other insects.
Jefferies was the financial advisor to TSCP on the sale of LTP Home Services.
© 2022 Private Equity Professional | March 24, 2022
