Restoration 1 Lands New Investors, Standing Out Amid M&A Pause
Restoration 1 and Bluefrog Plumbing + Drain are both essential businesses, which helped to close a deal with MPK Equity and Princeton Partners, said Gary Findley, CEO.
Restoration 1 and Bluefrog Plumbing + Drain landed a majority investment from MPK Equity Partners and Princeton Equity Group, standing out when COVID-19 woes have paused or scuttled many mergers and acquisitions.
"I think it actually helped us, more than it hurt us," said CEO Gary Findley about getting the deal closed during a pandemic. The fact that both franchises are considered essential businesses is the main reason.
"A lot of deals going on out there, they could be brick and mortar, restaurants or fitness clubs…some of those have been closed for six weeks. If you ever have something like that again, you better diversify," said Findley, explaining the thinking of private equity firms.
"So, diversifying into what is called an essential business, and it's operating during this time, I think it's what got us over the hump."
Findley began talking with private equity firms late last year, and liked what he saw when meeting with MPK Equity, a fellow Texas-based firm. The 'P' in MPK stands for Perot, as in the family whose late patriarch Ross Perot ran for president in 1992. H. Ross Perot Jr. serves as chairman of The Perot Companies.
MPK backed Urban Air Adventure Park and Sola Salon Studios, both in 2018. "I reached out to the CEOs of those other two companies, and asked, how do you feel about working with these guys? I got lots of compliments," Findley said.
Best known for helping the Curves women's fitness franchise grow from two units to 8,000 in eight years, Findley said he and his new investors plan additional acquisitions of service brands. Read more about his strategy in the next Franchise Times Dealmakers e-newsletter, publishing May 13.