Bunnell, Fla.-based Austin Outdoor has become part of the Yellowstone Landscape Group, a service and environmentally focused landscape provider that was formed last May. Financial details were not disclosed.
Austin Outdoor's leadership will retain significant ownership in Yellowstone and will lead the company's expansion in Florida and the Bahamas. The company provides comprehensive landscape services to the commercial, resort and hospitality, municipal, multi-family and master planned community markets.
| BREAKING THE ICE |
Yellowstone Landscape Group’s acquisition of Austin Outdoor broke the recent lull in mergers and acquisitions by private equity groups in the lawn and landscape industry. After much activity during the first half of the year, mostly due to multiple acquisitions by ValleyCrest and The Brickman Group, the third and fourth quarters were virtually void of transactions. While it might look like a sign of a failing green industry or overall economy, it also can be seen as a good sign, says Brian Corbett, managing partner at CCG Advisors, the company that advised Austin Outdoor in the sale. “ValleyCrest and Brickman are busy integrating their newly acquired companies,” he says. “When TruGreen made all the acquisitions, it was busy buying so fast it didn’t have enough time to catch its breath and integrate." A down economy doesn’t necessarily mean it’s a good or bad time to buy a company, Corbett says, adding private equity groups look for the well-run companies that stand out, no matter the economic situation. Corbett expects more lawn and landscape mergers and acquisitions to take place in the coming months. |
“Our focus on creating premier properties, building lasting relationships is closely aligned with Yellowstone's vision of building a world-class landscape organization dedicated to customer experience, return on investment and environmental stewardship,” says Edward Schatz Jr., founder of Austin Outdoor.
Yellowstone, with headquarters in Dallas, was formed with the acquisitions of Houston-based BIO Landscape & Maintenance and Atlanta-based Piedmont Landscape Contractors. While financial terms were not disclosed, BIO and Piedmont grossed $19 million and $30 million, respectively, in 2007, according to figures provided for Lawn & Landscape’s Top 100 list. That made Yellowstone an instant $50-million industry presence.
The organization’s goal is to become a strong national player. This transaction helps Yellowstone strengthen its presence in a key region, says Judith Guido, Yellowstone’s executive vice president and chief marketing officer.
The fact that Yellowstone was able to make the transaction amid the daily doom and gloom news about the economy says a lot about the companies involved, Guido says.
“Good and great companies always have opportunities either buy or be bought,” she says.
“We've built a team of landscape specialists whose common goal is to continually deliver the most knowledgeable and professional service to every customer and project,” says William Dellecker, Austin Outdoor's executive vice president and head of operations. “Joining Yellowstone will enable us to provide our customers with additional professional expertise, enhanced sustainable services and the ability to expand into larger geographic markets.”
As a Yellowstone Landscape Group company, Austin Outdoor will keep its brand identity, Guido says. The company will continue working in partnership with general contractors, developers, owners, property managers, architects, and real estate professionals. Management will not change hands either, Guido adds.
| SEE MORE ABOUT YELLOWSTONE |
Click here to see a video of John Miller and Robert Taylor of the BIO segment of Yellowstone. They spoke with Cindy Code about acquisitions and other business topics at the GIE+EXPO show in November. |
“Our joint vision of building a world-class landscape organization by providing our customers with the best team, most efficient operational processes and environmentally intelligent services makes the Austin Outdoor and Yellowstone merger a natural fit,” says Yellowstone's CEO, John Miller. “In addition to making Yellowstone one of the nation's largest full-service landscape companies, the merger of Austin with Yellowstone provides additional management depth, a diverse customer base, new service capabilities and sophisticated IT systems. We believe that by joining forces with Austin Outdoor we've created the strongest value proposition for our stakeholders.”
While Guido hopes 2009 will bring more acquisitions for Yellowstone, she says Yellowstone is not going to rush into anything.
“We’re taking our time,” she says. “We’re not a publicly traded company, so we don’t have to be a certain size at a certain time. “We’re looking at each company carefully. Just like any company, it takes time to do due diligence.”
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