Leaf Home, the residential services platform backed by Gridiron Capital, has restructured its balance sheet and expanded through the acquisition of Erie Home, in a $4bn financing deal led by Apollo Global Management and Ares Management.
Ares structured a $1.9bn preferred equity investment alongside co-investors and Gridiron, Leaf’s controlling shareholder. Apollo led a $2bn debt financing package, which supported the Erie Home acquisition and refinanced parts of Leaf’s existing capital structure.
Preferred equity and hybrid capital have become increasingly important tools for private equity sponsors looking to manage extended hold periods and extract liquidity through dividend recaps, amid a subdued M&A market.
Gridiron has backed Leaf Home since 2016, during which time the business has grown into one of North America’s largest home services platforms, offering roofing, gutters, water systems and garage solutions. The addition of Erie Home gives the company a footprint across 48 US states and Canada. Erie CEO Jenilee Common will take over as chief executive of the combined group.
Ares will also take a board role at Leaf and work alongside Gridiron and management on the company’s next growth phase.
