KKR has agreed to acquire A1 Garage Door Service, a US provider of residential garage door repair and replacement services, in a transaction valued at around $2bn, according to a report by Reuters citing unnamed people familiar with the deal.
The acquisition adds to a growing wave of private equity investment in residential home services, where sponsors have been attracted by recurring demand, resilient cash flows and opportunities to consolidate highly fragmented markets.
A1 Garage, headquartered in Phoenix, Arizona, was founded in 2007 by chief executive Tommy Mello and has grown into one of the largest residential garage door service providers in the US, operating across approximately 20 states.
The company received growth capital from private equity firm Cortec Group in 2022. KKR and Cortec reportedly declined to comment, while A1 Garage reportedly did not respond to requests for comment.
KKR already has significant exposure to the sector through its investments in Neighborly and Groundworks.
The firm acquired Neighborly in 2021, describing it at the time as the world’s largest provider and franchisor of home-service brands, spanning plumbing, pest control, restoration, electrical, cleaning, HVAC and home inspection services.
In 2023, KKR made a significant investment in Groundworks, a provider of foundation and water-management services for residential properties. Cortec Group is also an investor in Groundworks.
