Funds advised by Apax Partners (the “Apax Funds”) today announced the acquisition of Authority Brands, a leading North American franchisor of home services, from PNC Riverarch Capital. The financial terms of the transaction were not disclosed.
Founded in 1996 and headquartered in Columbia, Maryland, Authority Brands is the parent company of two home services franchisors: The Cleaning Authority, which provides residential cleaning services to over 100,000 customers across the U.S.; and Homewatch CareGivers, which delivers at-home services including elderly, disabled and after-surgery care, as well as help for those living with dementia. Authority Brands operates over 300 franchises in the U.S., Canada and Latin America, supporting them to grow through the provision of marketing, technology and operational support.
The acquisition by the Apax Funds will help the company accelerate its growth, both organically and through strategic acquisitions, as it looks to expand internationally and offer additional services. It also presents digitization opportunities as Apax intends to leverage its significant experience in this area to help Authority Brands provide enhanced software, digital marketing and systems to support its franchise partners. Under the terms of the acquisition, Authority Brands’ management team, led by Chief Executive Officer Rob Weddle, will remain in place.
Rob Weddle, CEO of Authority Brands, said: “We are very excited about the experience and depth the Apax team brings to this new partnership. Authority Brands has a vision to become the leading franchisor of home services by providing unparalleled business ownership opportunity to its franchisees and delivering first-class service to consumers. We are confident Apax shares in this vision and expect a bright future for Authority Brands.”
Ashish Karandikar, Partner at Apax Partners, said: “We have been attracted to the home services market for some time, due to its size, fragmentation and attractive growth rate. We have been impressed by Authority Brands’ established franchise network, experienced management, and strong track record of growth.
“We look forward to working with management and all franchise partners to accelerate growth, both organically and through M&A, as well as to leverage Apax’s significant experience in international expansion and digitization.”
September 24, 2018