BUNNELL, Fl. – One of the biggest companies in the industry just got bigger.
Yellowstone Landscape has acquired Somerset Landscape & Maintenance, a $30-million company based in Chandler, Arizona. Yellowstone ranked No. 8 on Lawn & Landscape’s Top 100 list last year with 2017 revenue of $174 million, while Somerset was No. 54 with $32.8 million.
Tim Portland, CEO of Yellowstone, said there were three key reasons why Yellowstone made the acquisition.
“First, we see tremendous potential in Dallas/Fort Worth, Phoenix and Las Vegas,” he said. “
“And third, we have clear and mutual agreement on the key areas where Yellowstone is investing new resources and focusing on bringing improved value to our combined businesses and teams. We are already seeing terrific profitable growth together, and we’re looking forward to driving more and more.”
Last summer, Yellowstone also acquired Leaderscape, which is located in Palm Beach, Florida, and employs 100 people. Portland said Yellowstone will not change its approach to acquisitions in 2019.
“Yellowstone will continue to engage with like-minded companies that would make for mutually beneficial partnerships, both within our existing geographic footprint, and in targeted markets where we do not currently operate,” he said.
Lemmerman, who will stay on with Yellowstone, said he wanted to sell to a company that he could trust to take care of his team and offer new growth opportunities. "I’ve had lots of offers to sell the business to others, but it never felt right," he said. "After visiting with Tim and his senior team, and vetting their operations, it was clear to me that Yellowstone was the right partner for us."
The acquisition was done in August and breaks Yellowstone into the Dallas/Fort Worth, Phoenix and Las Vegas markets for the first time.
Somerset was previously a part of Tregaron Capital, a California-based private equity firm, and will join Yellowstone, who is owned by CIVIC Partners, a private equity firm based in Chicago. All Somerset employees were retained in the move.