The Dwyer Group Inc. to be Acquired by TZP Capital Partners
December 9, 2010
The Dwyer Group Inc., the Waco, Texas-based parent company of the Glass Doctor franchisor, announced today that it has entered into a definitive agreement to be acquired by an investor group led by TZP Capital Partners I, L.P., a private equity fund based in New York. The deal is expected to close by the end of this year, and the company is valued at approximately $150 million, according to the company.
|Front row: (L to R) Dina Dwyer-Owens, CEO and chairperson of the Dwyer Group; Sam Katz, managing partner of TZP Group. Back row: (L to R) Mike Bidwell, COO and president of The Dwyer Group; Nathan Chandrasekaran, vice president of TZP Group; Duke Johnston, general counsel and vice president of Legal and Governmental Affairs of The Dwyer Group; Debbie Wright-Hood, chief administrativ officer of The Dwyer Group; Vladimir Gutin, Senior Partner of TZP Group; Robert Tunmire, executive vice president of The Dwyer Group and Tom Buckley, CFO and treasurer of The Dwyer Group.
Mark Dawson, president of the Glass Doctor, told glassBYTEs.com™ in an interview this afternoon that this new partnership will allow the Glass Doctor franchise to expand further in the United States and Canada and hinted at further expansion opportunities for the Dwyer Group as a whole.
“This will allow us to look at other businesses [in the home services segment] that complement us,” says Dawson, while adding that TZP was an attractive partner as it has a great deal of experience with franchises.
“They bring a lot of expertise to our company and have a lot of experience in franchising,” he says. “Anytime you bring in a private equity company they bring in a lot of expertise.”
Dawson adds that he expects a smooth transition.
“The good thing about TZP is they are committed to keeping key management in place,” he says. “I will remain as president of Glass Doctor. We see no changes personnel-wise—if anything we see it growing. We’re very excited about it.”
“We’re extremely excited to welcome The Dwyer Group to the TZP family and become involved with a group of franchisees and associates dedicated to a unique code of values,” says Sam Katz, managing partner of TZP Group LLC. “As a leader in the service industry, The Dwyer Group’s brands complete over two million service calls a year and are well positioned for expansion. Equally important to our investment philosophy and our support for growing companies, Dwyer’s executives remain fully committed to the business. Dwyer is the perfect complement to our portfolio.”
“We are thrilled about joining forces with TZP Group,” says Dina Dwyer-Owens, chairperson and chief executive officer of The Dwyer Group, who will remain in place along with the entire executive team. “We’re incredibly proud of the job our team has done to grow The Dwyer Group year after year. And the opportunity exists to do even more. TZP will be a strong partner and will be a big help in getting us to that next level. Together we have ambitious goals for the support and expansion of our growing network, and the common interest to find complementary businesses to add to our franchise lineup.”
The purchase, when complete, will transfer majority ownership from The Riverside Co. to TZP along with a significant reinvestment from The Dwyer Group executive team and a new investment from each brand president within The Dwyer Group of Companies.
Dawson told glassBYTEs.com™ that Riverside has been a great partner for the past seven years.
“Any time a private equity firm is part of the picture, stockholders will want a return on investment and it was time for us to look to go to next level and it was time for them to get their return on investment,” he says.
The Dwyer Group serves as a holding company for seven residential and commercial franchise service brands. The franchise network includes more than 1,500 franchisees operating in the United States and seven other countries. In addition to its franchise concepts, Dwyer also owns and operates 37 full-service glass stores in Maine, Vermont and New Hampshire. Dwyer’s franchisees along with its company-operated stores account for nearly $800 million in annual system-wide revenues.
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