The Brickman Group, which is based in Rockland, Maryland and, Calabasas California based, ValleyCrest Companies, announced last week that they have entered into a definitive merger agreement. Together they bring together a national landscape and snow services company with a talented and engaged team delivering customized solutions for their commercial customers across the United States.
The merger, which is subject to customary closing conditions, is expected to close by mid-2014. Brickman is currently owned by the publicly listed private equity giant KKR, and ValleyCrest is currently owned by affiliates of Michael Dell’s family venture firm, MSD Capital.
Once the deal closes KKR, which is still led by two of its original co-founders Henry Kravis and George Roberts, will have majority ownership of the combined company and MSD Capital will retain a significant minority ownership interest.
Commercial landscaping and professional snow removal services is a very big business in the United States and the combined annual revenues of the merged entity are around US$2 billion. Brickman and ValleyCrest will together have more than 20, 000 employees committed to design, build and maintain beautiful landscapes.
Andrew Kerin, Chief Executive Officer of Brickman, who will also serve as CEO of the merged company said with the announcement, “We are excited to bring together two family founded industry pioneers to continue shaping the industry while caring for client relationships that have been built over decades.”
He also added, “We share common values and have each achieved local, regional and nationwide success by putting our people and clients at the centre of all that we do. Together we will be able to offer clients even more innovative and customised solutions while also providing our extremely talented teams greater opportunities for professional growth and development.”
Roger Zino, Chief Executive Officer of ValleyCrest, who will become Vice Chairman of the merged company said, “We have known and respected one another for many years, and have always shared a commitment to superior customer service, a relentless focus on employee safety and support of the environment and communities in which we live and work.”
He then added, “This is an ideal match that will advance the landscape profession by bringing together a passionate community of the best trained and knowledgeable landscape professionals in the country.”
The two companies are quite evenly matched in size and scope. With over 10, 000 employees Brickman presently has a client base of over 10, 000 accounts. ValleyCrest itself has over 11, 000 employees operating in 150 different cities in the United States.