Green Merger News

May 2015 | The Principium Group | Editor: Ron Edmonds

From the Editor

Around my home right now, the buzz of cicadas is very strong. It is a roar really. It is a different roar from the annual cicadas we hear in the heat of the summer. This is the roar of 13-year cicadas. They were last heard around here in May and June 2002.

The cicadas go through a cycle. Every 13 or 17 years (depending on the local brood), the cicada nymphs emerge and go through their mating cycle, which is what
 makes the unbelievable noise. The cicadas mate and lay their eggs within a few weeks. As soon as they hatch, they burrow underground and will not be seen for 13 or 17 years when they will emerge for another mating cycle.
Business owners know there are cycles in business too. A good snow year may be followed by one or more poor ones.   Despite long-term trends, a severe drought may be followed by plentiful rain.
When it comes to mergers & acquisitions, the cycles are not nearly as predictable as 13-year or 17-year cicadas. But there are some similarities. When the mating season comes, there are lots of opportunities for both business buyers and business sellers. When the mating season ends, opportunities may dry up quickly and it is not very predictable when the mating season will return.
We are continuing to see extraordnary interest by both buyers and sellers this year.

What is driving the high level of activity?

Private equity is emerging as a major consoldation force in the industry, partly due to the significant investment needs of private equity and partly due to the higher profile the industry has had oiver the past two years.  Private equity firms are launching new platforms and are adding tio existing platforms.

Other industry players, especially regional companies are positioning themselves.

Business owners are evaluating their options in light of the current market conditions, which willnot exist indefinitely.

Many in the industry are watching to see what acquisitioin moves Brightview (the result of the Brickman/ValleyCrest merger) may make.

If you have an interest in selling or buying a lawn or landscape business, are ready to begin the exit planning process or would like to explore the potential impact of consolidation on your local market, we would welcome the opportunity to talk with you.  Give us a call at 888-229-5740 or email us at ron@principiumgroup.com.

If you are thinking about planning the sale of your business, consider  getting your Sellability Score. After you complete the short online survey, you will immediately receive your Sellability Score. We also send you a detailed report that covers the key drivers of sellability.  We will also include a guide to the Sellability Score for the green industry to help you interpret the information with a focus on the green industry.  Click here to get your Sellability Score.

Ron Edmonds

ron@principiumgroup.com

901-351-1510

Recent Transactions

There has already been a high level of merger & acquisition activity in 2015.  Here is our recap of recently-reported lawn and landscape-related mergers & acquisitions.

The Landscape Group (UK) has been acquired by Idverde (France) in a private equity deal creating Europe’s largest landscaper.

More information

One Rock Capital has formed Monarch Landscape and acquired Signature Landscape of Seattle.

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In Alabama, Landscape Workshop has acquired the Montgomery branch of Vision Landscapes, along with Birmingham area accounts.

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Armstrong Growers, a unit of employee-owned Armstrong Garden Centers has agreed to acquire DoRight’s Plant Growers in California

More information

Continuing its aggressive acquisition activity, John Deere Landscapes has acquired AMC Industries with nine locations in Texas and Oklahoma.

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JP Lawncare and Indiana Outdoor Living have merged to create ProScapeS.

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Rolling Greens, which provides interior and exterior landscaping in the DC area has been acquired by a Japanese company, Universal Engeisha Group.

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Arrow Environmental, a unit of Pest Environmental Services, has acquired 4Ever Green of Spring Hill, Florida.

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Davey Tree has acquired Kerns Brothers Tree Service & Landscaping in Wilmington, Delaware

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The Hawthorne Gardening Company, a unit of Scotts Miracle Gro, has acquired General Hydroponics, a supplier to the state legal marijuana industry.

More information

Davey Tree has acquired Nature First in Santa Cruz, California

More information

If you know of green industry business sales or mergers & acquisitions that should be reported here, please contact us.  Please also add us to press release distribution lists.

Businesses Wanted

For a list of markets with businesses wanted, click here.

The primary focus is commercial maintenance, but some design-build may be acceptable.  There are also opportunities for lawn care businesses in many markets.

We currently have a particular interest in the following:

  • Commercial landscape businesses with $1 million to $5 million in revenues in the Orlando, Florida; Atlanta, Georgia; and San Antonio, Texas, markets
  • Commercial landscape businesses from $5 to $10 million in the metro Atlanta market
  • Commercial landscape businesses in Southern California (San Diego, Orange, Riverside Counties) with $5 million to $20 million in revenues. 
  • Lawn care businesses in the Dallas-Fort Worth area
  • Commercial landscape businesses in the Carolinas
  • Commercial landscape businesses in Utah

AnchorBusinesses For Sale

For a list of businesses for sale, click here.  This list represents only  a portion of the projects we are working on which may be of interest.

We are seeking a buyer for a very profitable $3 million high-end residential landscape company in Northwest Indiana with a motivated seller.

Contact us for more information about any of these opportunities.

Subscribers Make Your Company More ValuableWhy “Subscribers” Can Make Your Company More Valuable

Amazon.com, and Apple are doing it.  So are lots of other companies, high-tech and otherwise.  What are we talking about?  Developing a subscription business model.

Click here for an article exploring this topic and what it might mean for a lawn or landscape business.

Book Ron Edmonds for Your Meeting

Contact us for information about booking Ron Edmonds to speak to your industry group or company meeting on green industry acquisition strategies, exit planning and similar topics.  No one has a firmer grip n the market for green industry mergers & acquisitions.

Sellability Score Find Out Now

The Sellability Score is a quantitative tool designed to analyze how sellable your business is.

After completing an online questionnaire, you will immediately receive a Sellability Score based on a 100 point scale along with instructions for interpreting your results. We will send you the full report along with a guide for interpreting the Sellability Score in the Green Industry.

Click here to get your Sellability Score.

 

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