The high residential concentration of Conserva Irrigation, Outdoor Lighting Perspectives and Archadeck was one of the main reasons for Lynx Franchising’s acquisition of Outdoor Living Brands. “This was a very strategic and transformational issue to the ground” for Lynx and its private equity owner, MidOcean Partners, said Russ Reynolds, CEO of Lynx, of entering full services. air for the house. “There is a huge overlap between commercial and home services,” he continued, with the goal for Lynx being to “create a best-of” branded album.
With the acquisition, closed on September 9 and announced this week, Outdoor Living Brands joins a Lynx portfolio of $ 700 million in revenue spread across three brands: the commercial cleaning franchise of over 9,000 units Jan-Pro, the restaurateur of fabrics, textiles and electronics FRSTeam and Intelligent Office, a franchise of temporary and virtual office spaces. With its concepts, OLB adds more than 250 locations and $ 123.5 million in sales to the Lynx portfolio. Terms of the contract are not disclosed.
Chris Grandpre, who founded Outdoor Living Brands in 2008 and who, as part of the sale, will be stepping down as CEO to join the Lynx board of directors, said “the great interest” in the company has prompted OLB to hire investment bank Boxwood Partners. been to explore a potential sale. Once officially introduced to Lynx, “we worked really hard over a 30 day period to make it happen,” he said.
“We have found alignment with strategy in their diversification efforts and, more importantly, with culture,” said Grandpré, particularly in “training, franchisee support and the economics of the driving unit. “.
“Credit to Chris and the management team. That sort of thing doesn’t happen in that time frame very often, said Reynolds, noting that Outdoor Living Brands was “very organized.”
“Usually sellers have to sort of catch up, but that wasn’t the case,” he continued.
Scott Zide, President and COO of Outdoor Living Brands, will continue to lead the brands, working with the Lynx management team. OLB will eventually serve as a residential platform for Lynx, which will “selectively and surgically” acquire more brands or even incubate concepts led by founders, Reynolds said.
But, said Reynolds, “Job # 1” is to support existing OLB franchisees, who are growing rapidly and coming out of a strong 2020 in which demand for home improvement services has grown so. that consumers spent more time at home during the pandemic.
“We are aware of the COVID bump,” Reynolds said when asked how Lynx assessed the performance of Outdoor Living Brands concepts in the context of COVID-19 spending changes.
“We are experienced and mindful of how we think about the COVID bump,” he continued, noting that Jan-Pro, with its cleaning and disinfection services, has seen tremendous sales growth in 2020 and “We saw people jumping left, right and center in the disinfection area.
As noted in Section 19 of its Franchise Backgrounder, Conserva Irrigation franchisees, which repair, maintain, maintain, design and build irrigation systems, have increased their gross revenues of 33.2% in 2020, to $ 704,514, for those who have been operating for at least two years. . (Eleven of the 15 reporting franchisees operate multiple territories). Average gross sales for Archadeck franchisees were $ 1.68 million in 2020, with system sales up 35.7% to $ 74.3 million, according to the brand’s FDD. Average sales for the 39 franchisees of Outdoor Lighting Perspectives in a single territory were $ 568,806 in 2020.
Lynx Franchising, said Reynolds, was drawn to the “recurring revenue built into the portfolio”. Take Conserva Irrigation, for example, he says. “Someone who crushes a sprinkler head in the morning” and needs a repair “is not going to change because of COVID. “
He and Grandpré also highlighted a shift in consumer spending for the home that began before the pandemic, as Grandpré said the trend towards remote work and the growth of the suburban housing market will only continue. “The heart and soul of our business is the two income suburban home,” said Grandpré. He also highlighted the investments made by Outdoor Living Brands prior to the pandemic that contributed to the sales growth.
Among those investments was the creation of a quick start program to guide franchisees “from the moment they sign” their franchise agreement, Grandpré said. It includes both software support and personnel assistance “to shorten the path to break-even and shorten the path to our AUVs”.
MidOcean Partners, added Reynolds, is also prepared to invest in training and franchise development to develop the systems.
New York-based MidOcean Partners, which owns among its investments FullSpeed Automotive, parent company of the Grease Monkey and SpeeDee oil change franchises, acquired Lynx Franchising in January 2021 from Incline Equity Partners, which had owned Lynx since. October 2016.
Based in Alpharetta, Georgia, and formerly Premium Franchise Brands, Lynx changed its name in 2019 following the acquisition of Intelligent Office. It then purchased FRSTeam in June 2020. Earlier in September, it acquired The Content Specialists, a hardware content restoration company, with the intention of merging it with FRSTeam.
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