commercial landscaping

Sterling Sees Green in GRC’s HeartLand

by

Sterling Investment Partners has acquired the HeartLand Company, a Midwest-based commercial landscaper, from Great Range Capital. Great Range formed HeartLand in April 2016 in partnership with industry executive Edward Schatz to begin a consolidation of the commercial landscaping industry.

HeartLand is a provider of commercial landscape and facilities services to more than 3,000 properties. The company’s services include grounds maintenance, landscape enhancements and winter services including snow removal.

HeartLand operates through five operating companies: Kansas City-based Signature Landscape (acquired in April 2016); Denver-based Keesen Landscape (acquired in November 2016); Columbia, MO-based Columbia Landscape (acquired in August 2018); Lexington, KY-based Hillenmeyer Landscape (acquired in April 2019); and Pittsburg-based JML Landscape (acquired in July 2019). Heartland is led by CEO Edward Schatz and is headquartered in Mission Woods, KS.

During the term of Great Range’s ownership of HeartLand, the company complete nine acquisitions. “It has been a rewarding experience to help launch the HeartLand platform. Partnering with the leadership teams, owners and employees of the nine completed acquisitions has been an honor. We’re proud that HeartLand has become a prominent player in the commercial landscape industry and are confident in their continued success,” said Mark Robinson, a principal at Great Range.

“We conducted an intensive and focused search to secure a new financial partner who will support our continued growth and that process led us to the ultimate selection of Sterling Investment Partners,” said Mr. Schatz. “While they possess the depth of financial resources we needed, they also bring an understanding of and enthusiasm for this business.  Their proven track record and management partnership philosophy has resulted in the growth and development of multiple firms over the years and we are confident they will help HeartLand achieve that same level of success.”

“We are very excited to partner with HeartLand’s entrepreneurial team, who have a compelling history of success in the space,” said Charles Santoro, managing partner and co-founder of Sterling. “We look forward to working with the company to expand its geographic reach, as the team continues to build a world-class platform.”

Sterling Investment Partners invests in companies with revenues of $100 million to $500 million and EBITDAs of $15 million to $40 million. Sectors of interest include business services, specialty manufacturing, value-added distribution, consumer, and transportation and logistics. Sterling was founded in 1991 and is based in Westport, CT.

Great Range invests in Midwest-based companies that have revenues of more than $10 million and EBITDA of more than $3 million. Sectors of interest include niche manufacturing, business and industrial services, consumer and retail, and healthcare services. The firm was founded in 2010 by Ryan Sprott and Paul Maxwell and is headquartered near Kansas City in Mission Woods, KS.

© 2019 Private Equity Professional | September 5, 2019

Westhook Adds to Metco Landscape

by

Metco Landscape, a portfolio company of Westhook Capital, has acquired PGM, a provider of commercial landscape maintenance services.

PGM (Perfection Grounds Maintenance) was founded by its president Dan Pohja more than 30 years ago and is based in Colorado Springs (www.perfectiongrounds.com).

Metco Landscape, acquired by Westhook in September 2018, is a Colorado-based provider of commercial landscape maintenance, development, design, enhancement, and snow removal services. The company, with revenues of $64 million, was ranked as the 26th largest North American lawn care and landscaping company in 2019 by Lawn & Landscape magazine.

Metco operates out of its headquarters in Aurora, CO, with additional branches in Denver, Colorado Springs, and Fort Collins (www.metcolandscape.com).

“PGM is a great company that shares our mission and relentless focus on providing high-quality landscaping services and customer satisfaction,” said Mark Tomko, founder and CEO of Metco. “We are impressed with PGM’s people, reputation, and the positive impact they have had in their community and are excited to partner with Dan Pohja and his team.”

Westhook invests in buyouts of US-based lower middle market companies that have at least $20 million of revenue and EBITDA of $4 million to $15 million. Sectors of interest include consumer, industrial, business services and healthcare services. The Los Angeles-based firm held a final closing of its inaugural fund, Westhook Capital Partners LP, with $140 million in commitments in September 2018 (www.westhook.com).

Ceibass Venture Partners was the financial advisor to PGM on this transaction.

© 2019 Private Equity Professional | August 14, 2019

ClearLight Acquires Moore Landscapes

by

ClearLight Partners has acquired Moore Landscapes, a provider of landscape installation and maintenance services.

Moore Landscapes provides landscape installation, maintenance and enhancement services; snow and ice management; and interior plant maintenance services to companies, homeowner associations, and municipalities. The company was founded in 1948 by Floyd Moore and has been led by Floyd’s sons, Victor and Eric Moore, since the 1980s. Victor and Eric will remain equity holders in the company and will join the company’s board of directors. Moore Landscapes is based in the Chicago suburb of Northbrook, IL (www.moorelandscapes.com).

In connection with the investment, Joel Korte – a former Senior Vice President with The Brickman Group, a large commercial landscape services provider owned by KKR – has also invested in the company and was named Moore’s new CEO. Mr. Korte was with Brickman from 2004 to 2015. At Brickman he was directly responsible for operations in Ohio, Michigan, Kentucky, Tennessee and western Pennsylvania, Indiana, Illinois and Minnesota markets which included 32 individual business branches totaling $300 million in revenue. During that time he merged four add-on acquisitions into the business over a 10 year period. He began with Brickman in 2004 after he sold his company, Urban Environments, which he founded in 1993, to Brickman.

“Victor and Eric Moore have built a great organization and we believe the company is well positioned for continued growth and success. We believe Joel Korte is a fabulous addition to an already talented team and look forward to supporting him and the entire team,” said Andrew Brennan, a Partner at ClearLight and also a former senior executive at commercial landscape services firm Valley Crest Companies. Valley Crest was acquired by The Brickman Group in June 2014.

ClearLight Partners invests from $10 million to $50 million in US or Canadian based middle market companies with revenues from $25 million to $250 million and EBITDAs from $4 million to $15 million. Sectors of specific interest include specialty manufacturing and distribution; business services; and consumer products and services. The firm has $900 million of assets under management and is based near Los Angeles in Newport Beach, CA (www.clearlightpartners.com).

“Moore Landscapes has long had a culture of going above and beyond to serve its clients, which has created an outstanding reputation and strong trust-based relationships with a discriminating customer base,” said Mr. Korte. “The management team and field teams have incredible tenure and experience and a reputation for delivering consistently high quality service. I’m thrilled to have the opportunity to work with such a highly skilled team and to contribute to the next stage of growth of Moore.”

Moore Landscapes was represented by CCG Advisors, an Atlanta-based investment banking firm (www.ccgadv.com). Managing Partner Brian Corbett led the transaction for CCG.

© 2017 Private Equity Professional | May 19, 2017

CIVC Acquires Yellowstone from Gridiron

by

Chicago-based middle market private equity firm CIVC Partners has acquired Yellowstone Landscape Group, in partnership with the company’s management team, from Gridiron Capital which acquired the company in April 2008.  Gridiron will retain a minority ownership interest in Yellowstone.

Yellowstone, through its subsidiaries Austin Outdoor and BIO, provides commercial landscape maintenance and installation services to more than 1,500 homeowners’ associations, corporate office campuses, resorts, and municipalities throughout the Southeast US and Texas.  Landscape maintenance services include mowing, detailing, irrigation, and turf management as well as arbor care, design and installation services.  The company is headquartered in Bunnell, FL and has 16 branches across Texas, Florida, Georgia, and South Carolina (www.yellowstonelandscape.com).

“Yellowstone is one of the few operators of scale in a highly attractive industry defined by recurring revenue, limited cyclicality, and a fragmented base of small competitors,” said John Compall, a Partner at CIVC.”

CIVC was previously an investor in The Brickman Group, one of the largest commercial landscaping firms in the country.  CIVC exited its investment in Brickman in 2006.

“We are thrilled to be partnering with a CIVC team that enthusiastically supports our strategy for Yellowstone. CIVC has been an active investor in the landscape maintenance industry for nearly two decades and brings an unmatched track record of partnering with management teams to rapidly grow businesses in service industries,” said Yellowstone CEO, Tim Portland. “Based on their past experiences, we expect CIVC to be an excellent partner for us as we execute on our business strategies.”

CIVC invests from $15 million to $85 million in middle-market companies that have at least $5 million of EBITDA.  Sectors of interest include business services and financial services. CIVC currently manages over $1.5 billion in capital and is investing out of CIVC Partners Fund IV. The firm is based in Chicago (www.civc.com).

Harris Williams & Co. served as the financial advisor to Yellowstone and Moore & Van Allen served as its legal advisor.  Kirkland & Ellis served as legal advisor to CIVC.

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-13-15