A major commercial landscaping firm put to rest rumors about its financial dealings by announcing it has a new private equity partner.
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The Brickman Group confirmed that it closed on a recapitalization of the company on Jan. 23. The transaction was undertaken to provide an exit strategy for CIVC Partners, Brickman’s long-time private equity partner since 1998, and to refinance Brickman’s public bonds, which were issued in 2002, with more favorable private debt.
To facilitate this process, Gaithersburg, Md.-based Brickman brought in Leonard Green & Partners, a new private equity partner.
President and CEO Scott Brickman says the Brickman family, management and stockholders will continue to retain a majority share of the company. Leonard Green will own slightly less than 50 percent.
From an operational and leadership perspective, nothing will change. The company’s management, employees, customers and vendors will continue to experience business as usual, Brickman says.
He compares the transaction to a smaller landscaping company switching banks.
“You change the bank you use and your checking account,” he says, adding, “Will this change the business for you?”
The company was No. 3 on Lawn & Landscape’s most recent list of top-earning landscape industry companies, with a 2005 revenue of $454,545,000. Brickman says that the recapitalization process is a positive for the company and the industry, which historically has been comprised of smaller companies.
“This raises our industry’s profile with lenders and others in the financial world,” he says. “This should benefit the industry as a whole.”