Wells Fargo Capital Finance provides $32.5 million for the TruGreen LandCare acquisition.
Santa Monica, Calif. – Wells Fargo Capital Finance, part of Wells Fargo & Co. recently provided a $32.5 million senior secured credit facility for TruGreen LandCare. The facility was used to support the acquisition of TruGreen LandCare by Aurora Resurgence, an affiliate of Aurora Capital Group, from The ServiceMaster Co. The proceeds will be used to fund the company’s ongoing working capital, capital expenditures, and general corporate needs.
“TruGreen is another demonstration of the complementary relationship between Wells Fargo Capital Finance and Aurora Capital Group,” said Jim Marasco, a senior managing director at Wells Fargo Capital Finance. “The result was a custom-designed financing solution that addresses the company’s seasonal working capital needs and leaves them in a strong position to grow market share within the commercial landscaping market.”
“Completing this financing further strengthens the long-standing relationship between Aurora Resurgence and Wells Fargo,” said Joshua Phillips, a managing director with Aurora Resurgence. “This transaction positions TruGreen Landcare with a strong balance sheet and significant liquidity to fund continued growth. As the company continues to strive to be the best in the industry, TruGreen LandCare’s employees and customers will also benefit from this new relationship with Wells Fargo Capital Finance.”
Mac McIlvried, chief executive officer of TruGreen LandCare, added, “The relationship with Wells Fargo is an important step forward for TruGreen LandCare as an independent landscaping company, and it provides us with capital to support investments in our future growth. We are already capitalizing on the benefits of the relationship and look forward to working with the Wells Fargo Capital Finance team.”
In June, Aurora Resurgence, part of a $2 billion Los Angeles-based investment firm, bought ServiceMaster’s commercial landscape division for just shy of $38 million – a fraction of the $250 million ServiceMaster paid for it in 1999.
The sale of its landscape division allows TruGreen to focus on lawn care, which has historically been a stronger segment for the company.
ServiceMaster said the deal would have no impact on its lawn care division, TruGreen LawnCare.
“Our decision to sell to Aurora Resurgence allows us to concentrate on our core residential and commercial businesses,” Hank Mullany, CEO of ServiceMaster, said in a press release in June.
ServiceMaster announced in November of 2010 that it was considering a sale of TruGreen LandCare. According to SEC filings, the company determined in the first quarter that “TruGreen LandCare did not fit within the long-term strategic plans” of its parent company.
Founded in 1998 and based in Ijamsville, Md., TruGreen LandCare is a provider of commercial landscaping services to corporations, municipalities, universities, airports, apartment buildings and homeowner associations.