Authority Brands Welcomes the Clockwork Brands into its Family, Current Capital serves as Financial Advisor to Apax Partners
New York and Columbia, Maryland, April 30, 2019: Authority Brands, a leading home services franchising platform backed by funds advised by Apax Partners, announced on February 21, 2019 the acquisition of Clockwork, Inc., and certain of its affiliates (“Clockwork”) from Direct Energy Group, a subsidiary of Centrica plc. The transaction closed on April 30, 2019. The acquisition is the third home services add-on for Authority Brands since the company was acquired by funds advised by Apax Partners in September 2018.
Established in 1999, Clockwork delivers critical home services through three leading plumbing, electrical, and heating, ventilation and air-conditioning (“HVAC”) providers across the United States. Its household-name brands – Benjamin Franklin Plumbing® (“Benjamin Franklin”), Mister Sparky® electric, and One Hour Heating & Air Conditioning® (“One Hour”) – are all rated among the best-in-class in their respective categories.
Authority Brands is the parent company to leading home services brands The Cleaning Authority, Homewatch CareGivers, America’s Swimming Pool Company and Mosquito Squad which operate across the residential cleaning, at-home care, swimming pool repair and maintenance, and pest control services sectors respectively. Authority Brands supports individual franchisee growth by providing strong marketing, technology and operational support.
Rob Weddle, CEO of Authority Brands, said: “The addition of the Clockwork group of brands is an important and significant step in the evolution of Authority Brands. All three brands are market-leading franchises within their respective industries and their addition to our portfolio doubles our overall system revenue to over $1 billion. This scale allows us to further strengthen each of our brand’s systems and continue down the path of becoming the home services franchisor of choice for both business owners and consumers.”
Ashish Karandikar, Partner at Apax Partners, said: “We are delighted to support Authority Brands in this transformational acquisition. The Clockwork brands operate in attractive markets and will bring scale and diversification to Authority Brands’ platform. We anticipate substantial benefits for both businesses from cross-selling and collaboration across marketing, technology and operational support.”
Bruce Stewart, president of Direct Energy Home North America said: “The decision for this sale reflects our goals to focus and simplify our channels to customers and to own our own brands. Authority Brands is a good home for Clockwork and the franchise owners and customers will see no difference in our service delivery as we conclude this transaction.”
Current Capital acted as Financial Advisor to Apax Partners on the transaction.
About Authority Brands
Headquartered in Columbia, Maryland, Authority Brands, LLC is the parent company of four leading home service franchisors, The Cleaning Authority, Homewatch CareGivers, America’s Swimming Pool Company and Mosquito Squad. Together, these brands provide recurring home services through more than 550 franchise locations in the U.S., Canada, Latin America, Kenya and Indonesia. Authority Brands is dedicated to supporting individual franchisee growth through providing strong marketing, technology and operational support.
About Apax Partners
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of c.$50 billion. The Apax Funds invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com.
Source: Apax Partners
About Current Capital Partners LLC
Current Capital Partners LLC is an independent advisory and merchant banking firm that provides mergers and acquisitions advisory, corporate management services, and private equity investing, primarily in middle market and smaller companies in the industrial and services industries. Current Capital’s mergers and acquisitions advisory services include actionable ideas and execution for investment firms and companies seeking industry knowledge; an independent perspective on strategic and capital structure reviews; and other related services focused on helping clients maximize value; its corporate management services include sitting on Boards of Directors and providing related consulting services for other investors and financial institutions; providing Chief Restructuring Officer services; and offering advice and expert witness services in complex corporate litigation; and its private equity investing efforts include primarily control investments where we have significant influence and where we can partner with management teams to accelerate profitable growth and create value. Mergers and acquisitions advisory services, and related products and securities services, are provided by our affiliate, Current Capital Securities LLC, a broker-dealer and member of FINRA and SIPC.
Kevin J. Smith
Telephone: +1 212 223 0637
Email: [email protected]