KKR to acquire home services platform Neighborly
KKR, a global investment firm, has agreed to acquire Neighborly, the world’s largest provider and franchisor of home service brands, from Harvest Partners. Financial details of the transaction have not been disclosed.
Founded in 1981, Neighborly is a home services platform that connects more than 10 million residential and commercial customers with a community of professional services focused on repairing, maintaining and enhancing consumers’ homes and properties. Through a portfolio of 28 brands, the Company offers a wide array of services including plumbing, pest control, restoration, electrical, cleaning, HVAC, home inspection and many more.
As one of the largest franchisors of ‘do-it-for-me’ professional services, Neighborly has built a network of more than 4,800 franchises both in the US and internationally. Over the past decade, the Company has quickly grown its platform through the organic growth of its existing service brands and strategic acquisitions of complementary franchise service brands.
Mike Bidwell, President and CEO of Neighborly, says: “Today’s milestone is a strong validation of our business-building strategy and differentiated ability to deliver essential home services. We are excited to embark on our next chapter of growth with KKR’s support and global expertise and look forward to continuing to be a partner of choice for both customers and franchise owners in the years to come.”
Felix Gernburd, Managing Director at KKR, says: “In a large and highly fragmented industry, Neighborly stands out for its differentiated strategy of bringing together adjacent services under a diversified and tech-enabled platform, and – most importantly – for its unrivalled dedication to customer service. We are thrilled to be investing in the Neighborly team as they continue to execute on their mission: enriching people’s lives by delivering amazing experiences.”
Nicholas Romano, Partner at Harvest Partners, says: "We are pleased to have worked with Mike and his team to continue building the premier residential service provider providing services that consumers need to repair, maintain and enhance their homes. Thoughtful investments in technology and human capital have resulted in a platform positioned for accelerated growth in the coming years." Harvest's Neighborly investment team is led by Steve Eisenstein, Nicholas Romano and David Schwartz.
KKR is making the investment in Neighborly from its North American private equity fund.
Harris Williams is acting as financial advisor to Neighborly®, with White & Case acting as a legal advisor on the transaction.
The transaction is expected to close in Q3 2021, subject to regulatory approvals and other customary closing conditions.