Blackstone Acquires Majority Stake in SERVPRO
SERVPRO and Blackstone (NYSE:BX) announced today that private equity funds managed by Blackstone (“Blackstone”) have recapitalized SERVPRO, a leading franchisor of residential and commercial property damage restoration services. Blackstone is acquiring a majority stake in SERVPRO as part of Blackstone’s Core Private Equity strategy, which is designed to hold investments for longer periods of time than traditional private equity. The Isaacson family will be re-investing alongside Blackstone and will continue to be significant shareholders in the business going forward. Financial terms of the transaction were not disclosed.
Founded in 1967 by the Isaacson family, SERVPRO is a leading national franchisor, providing services in both residential and commercial property mitigation, restoration and reconstruction following damage related to water, fire, mold or storm activity. Since its founding, SERVPRO has now grown to over 1,700 franchisees in the United States and Canada.
Rick Isaacson, SERVPRO CEO, said, “We are thrilled about this long-term investment from Blackstone and the strategic benefits its global platform can provide the company, our franchisees, and our customers. SERVPRO was founded over 50 years ago with the vision of becoming the premier cleaning and restoration company, and we believe this partnership with Blackstone is a vital next step towards this goal.”
Peter Wallace, Senior Managing Director at Blackstone, said, “We are excited to make this investment and join together with the Isaacsons and the SERVPRO team as long-term growth partners. We believe the additional capital and extensive network of relationships that Blackstone can bring to bear will benefit not only SERVPRO, but its more than 1,700 franchisees and its customers.”
David Kestnbaum, Managing Director at Blackstone, said, “SERVPRO is a high-quality company with a strong management team and great long-term prospects. We look forward to working with SERVPRO and its franchisees to help fuel the business’ next phase of growth. As one of the largest owners of residential, office, retail, hotel, and industrial real estate in the world, Blackstone has unique expertise and insights into a broad array of properties that are relevant to SERVPRO.”
Harris Williams is acting as financial advisor to SERVPRO with respect to the transaction and Bass, Berry & Sims PLC is acting as SERVPRO’s legal counsel. Jefferies, Credit Suisse, and Deutsche Bank Securities provided debt financing for the transaction and served as financial advisors to Blackstone. Simpson Thacher & Bartlett is acting as Blackstone’s legal counsel.