TSG Consumer Partners & Oak Hill Partner with Leonard Green and Management to Enhance Wrench Group’s Next Phase of Growth
Investment will advance Wrench Group’s digital transformation and disciplined M&A strategy
Existing investor Leonard Green & Partners will remain majority shareholder
SAN FRANCISCO, CA and NEW YORK, NY – November 9, 2022 – TSG Consumer Partners (“TSG”) and Oak Hill Capital (“Oak Hill”) today announced that the firms have made a significant minority investment in Wrench Group (“Wrench Group” or the “Company), a leading provider of residential HVAC, plumbing, and electrical services. As part of the transaction, existing investor Leonard Green & Partners (“LGP”), along with Management, will retain a majority interest in the Company. The terms of the transaction were not disclosed.
Upon closing, Ken Haines will continue to serve as Chief Executive Officer of the Company, supported by a deep and talented management team comprised of leaders across all of their brands, all adding significant industry operating expertise.
Based in Atlanta, Georgia, Wrench Group is a national leader in home repair, replacement, and maintenance services specializing in heating, ventilation, and air-conditioning (HVAC), plumbing, water, and electrical services. Wrench Group’s locations serve customers in cities across the country and offer outstanding customer service and support through their strong network of technicians, sales, customer service, and support staff. Wrench Group currently serves over 1.75 million customers annually across 16 brands in 24 markets throughout the U.S.
“As we look to enter this next phase of growth, we are excited by the opportunity to partner with TSG and Oak Hill to leverage their significant financial, digital, and operational capabilities and expertise. We are also thrilled that LGP is remaining a majority owner of our business, as the team has been instrumental to our success,” said Ken Haines, CEO of Wrench Group. “We are committed to working with our investment partners to enhance our product and service offerings to meet the consumer’s evolving needs while maintaining and enhancing long traditions of outstanding customer experience.”
“Wrench has been a business that we have admired from afar for a while and are thrilled that we now get to partner with, and work alongside management, Oak Hill and LGP to accelerate the Company’s next phase of technology-enabled growth,” said Bill Cooling, Managing Director at TSG Consumer Partners.
“We look forward to maintaining the ideals and foundation on which this industry-leading business was built and to applying our consumer and technology expertise to Wrench Group’s robust operations to help unlock new growth opportunities, including expanding its geographic footprint and increasing its digital capabilities,” added Michael Layman, Managing Director at TSG Consumer Partners.
“We believe Wrench is a best-in-class platform with multiple levers to compound value and is well-positioned to further accelerate its already impressive growth. We are excited to partner with CEO Ken Haines, his outstanding team, Leonard Green, and TSG to further help the company expand organically and through strategic acquisitions,” said Steve Puccinelli, Managing Partner at Oak Hill.
“It has been a privilege for LGP to be part of the Wrench Group story over the past three years. We have worked closely with Ken and Wrench Group management team to build a unique group of market-leading home services brands and are incredibly excited to continue our partnership going forward with TSG and Oak Hill as the Company enters its next phase of growth,” said Chris McCollum, Partner at LGP.
“We are grateful for our partnership with Ken and the rest of the Wrench Group management team. Their leadership and acumen have allowed the Company to grow into a nationwide platform. We look forward to working with TSG and Oak Hill to help Wrench Group accelerate its growth and further solidify its position as the market leading home services platform,” added Tim Flynn, Partner at LGP.
ABOUT WRENCH GROUP
Wrench Group, LLC is a national leader operating in 24 markets across 13 states. The locations provide home repair, replacement and maintenance services specializing in heating, ventilation and air conditioning, plumbing, water, and electrical services. The company collectively serves more than 1.75 million customers annually with more than 5,800 team members in the Atlanta, Austin, Birmingham, Charlotte, Cincinnati, Columbus, Dallas, Denver, Fort Myers-Naples, Houston, Indianapolis, Jacksonville, Los Angeles, Louisville, Nashville, Orlando, Palm Springs, Phoenix, Sacramento, San Francisco Bay Area, Sarasota, southern Maryland, St. Augustine, Tampa Bay and Tucson metropolitan areas.
The locations have developed strong reputations with brands that date back to the 1940s. For more information, please visit us at www.wrenchgroup.com.
Leonard Green & Partners, L.P. (“LGP”) is a leading private equity investment firm founded in 1989 and based in Los Angeles with over $70 billion of assets under management. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 120 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. The firm primarily focuses on companies providing services, including consumer, healthcare, and business services, as well as retail, distribution and industrials. For more information, please visit www.leonardgreen.com.
ABOUT TSG CONSUMER PARTNERS
TSG Consumer Partners, LP is a leading private equity firm that partners with founders and management teams to build and accelerate growth for best-in-class consumer-facing businesses. Since its founding in 1986, TSG has been an active investor in the consumer industry. Representative past and present partner companies include Backcountry, Canyon Bicycles, Duckhorn, Dutch Bros, e.l.f. Cosmetics, IT Cosmetics, Joe Hudson’s Collision Centers, Mavis Tires, Planet Fitness, popchips, Power Stop, REVOLVE, Revolut, Robinhood, Rough Country, Smashbox, Super Star Car Wash, Stumptown, Thrive Pet Healthcare, and Vitaminwater. For more information, visit tsgconsumer.com.
ABOUT OAK HILL CAPITAL
Oak Hill is a longstanding private equity firm focused on the North America middle-market. Oak Hill applies a specialized, theme-based approach to investing in the following dedicated industry sectors: Media & Communications, Industrials, Services, and Consumer. The Firm implements a highly systematic approach to theme development, proactive origination, and value creation in partnership with management to build franchises of lasting value. Over the past 35+ years, Oak Hill and its predecessors have raised approximately $20 billion of initial capital commitments and co-investments, invested in approximately 100 companies, and completed more than 300 add-on acquisitions representing an aggregate enterprise value at acquisition of over $60 billion. For more information, please visit www.oakhill.com.
The Wrench Group
TSG Consumer Partners
Brandon Pinto / Kevin Siegel
Oak Hill Capital