HCI Equity Partners is Up to Four Companies for its New HCI Lawn Care Treatment Platform
As of January 2024, HCI Equity Partners has now acquired four companies and created an HCI Lawn Care Treatment Platform (started in June 2023) to purchase residential lawn care, tree, and pest control firms.
The interesting aspect of these acquisitions is the private equity firm’s attempt to consolidate the highly fragmented residential lawn care sector. The industry features many small firms operating in a local geographical region.
Right. Many of the few large companies that operate throughout the country often focus on the commercial or homeowner’s associations and multiple-unit housing markets.
If successful, the residential lawn care portfolio being assembled by HCE Equity Partners would compete with national providers such as BrightView Holdings and TruGreen Limited Partnership, firms also owned by private equity.
Highly fragmented industries are often ripe for roll-up.
This is something that has come and gone in cycles over the years... roll-up, sell-off, repeat. I would think that with more Boomer business owners looking to retire this is another chance for a fresh roll-up/acquisition cycle.
Labor issues continue to be a problem in buildings and grounds industries. I would imagine that this challenge feeds a consolidation cycle as well.
Sure, larger companies are better positioned for capital investments, particularly those involving automation and things like robot mowers.
Or at least better positioned for the bulk purchasing for supplies that could keep costs down in other areas and allow them to weather the labor crunch.
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