SERVPRO® Announces Recapitalization and Long-term Partnership with Blackstone
Gallatin, TN and New York, NY, March 26, 2019– 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 much 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 grown to over 1,700 franchisees in the United States and Canada.
Rick Isaacson, SERVPRO Chief Executive Officer, 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.”
Jefferies LLC, Credit Suisse and Deutsche Bank are acting as financial advisors to Blackstone in connection with the transaction, and Simpson Thacher & Bartlett is acting as Blackstone’s legal counsel. 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.
Founded in 1967, the SERVPRO Franchise System is a leader and provider of fire and water cleanup and restoration services and mold mitigation and remediation. SERVPRO’s professional services network of more than 1,700 individually owned and operated Franchises responds to property damage emergencies ranging from small individual disasters to multi-million dollar large-loss events. Providing coverage in the United States and Canada, the SERVPRO System has established relationships with major insurance companies and commercial clients, as well as individual homeowners.
Blackstone is one of the world's leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with $472 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.