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The Brickman Group to be Sold

Discussion in 'Commercial Snow Removal' started by Lawnscape89, Jan 25, 2007.

  1. Lawnscape89

    Lawnscape89 Senior Member
    Messages: 213

    The Deal.com recently reported that Lehman Brothers has engineered a deal for Leonard Green & Partners LP, Los Angeles, to buy the Brickman Group Ltd., in a $847 million recapitalization. The Deal , an online product of The New York Times, reported that it learned of the proposed transaction through regulatory filings.

    Founded in 1989, Leonard Green & Partners L.P. describes itself as “a pioneer” in the development of the leveraged buyout industry. “We have repeatedly demonstrated our ability to successfully originate, negotiate, consummate and realize investments in a variety of different industries and economic environments,” it says on its Web site. “We partner with management to enhance the value of companies through operational improvements, acquisitions, financial engineering and other strategic initiatives.”

    According to the The Deal, the founding Brickman family owns 54% of the company, other managers 10% and CIVC Partners, Chicago, holds 36% of the company. CIVC acquired its stake in the company in a leveraged recapitalization in 1998, the same year that then 35-year-old Scott Brickman became CEO of the company. That infusion of venture capital allowed the Brickman Group, led by Scott Brickman, taking over from his father Richard Brickman, to aggressively grow its network of branch locations across the country by acquisition.

    In 2002 the company went through its second recapitalization through a $150 million senior subordinated debt offering, according to The Deal.

    Long-envied by other landscape operations for its efficient services delivery systems, the Brickman Group recorded revenues of approximately $100 million in 1998. Today the company’s 135 branches with 6,000 employees in 35 states, generated about $460 million in revenues its latest fiscal year.

    Two of the company’s most notable recent acquisitions included Lakewood Landscaping, Troy, MI, and, this past fall, Mike Rorie’s Groundmasters, the market-leading landscape maintenance operation in the tri-state area surrounding Cincinnati, OH. Sources put the sale price at approximately $30 million.

    The Deal reported that the Brickman management team will remain in place.
  2. MStine315

    MStine315 Senior Member
    Messages: 144

    I read the headline today in my weekly Landscape Management e-mail, so I clicked on the link to see the details, and lo and behold, the link was removed. Hmmm.....coincidence? It's nice to see someone else saw this, too.
  3. Lawnscape89

    Lawnscape89 Senior Member
    Messages: 213

    The link was a "dead end" when I found it on Landscape Management, too. I did a google search and somehow, I got the story. Maybe it wasn't supposed to come out yet? Or, is being edited. HMMMM.
  4. DBL

    DBL PlowSite.com Addict
    Messages: 1,310

    so theyre going to sell to this larger company and just pretty much be employees running the show now and this investment company makes all the money why not if youre going to stay in the managment just stay making the money and be the owners
  5. CHCSnowman

    CHCSnowman Senior Member
    from Indiana
    Messages: 138

    $462,000,000 reasons why..........that's a lot of zeros payup payup payup

    Thats assuming the actual Brickmans stay involved. When the press release says "Brickman management team will remain in place" it could simply be saying that regional and top management will stay the same, and that the Brickmans will move on.

    I know a guy who sold out a body repair center to a nationwide chain, he got $30,000,000 for his 6 locations and had to sign a non compete for 5 years. He waited 5 years to the day and he is now back on his way to being the biggest in this area......I bet he ends up selling out again, lol.

    Just a guess.
  6. Oshkosh

    Oshkosh PlowSite.com Addict
    Messages: 1,655

    Happens all the time...

    The 5 year clause is common happens all the time with Trash companies and and I have seen it with a storage shipping container company locally.Sold out for an absurd amount like $17,000,000 to AEL and now a little over five years later he is selling shipping containers again, 5 miles away,only this time he has frontage on a major highway thanks to the buyout....On top of that there is a deal in the works/on the table for a major hotel chain if they legalize gambling to build a casino on one of his parcels of land.....The rich get richer...