There’s a new home improvement juggernaut in town.
Renovo Home Partners, a new private equity home improvement network, announced its launch yesterday and majority purchases of three remodeling leaders.
Revono, backed by private equity firm Audax Group, aims to partner with remodeling and home improvement companies with a focus on high-volume, quick-turnaround bath, window, siding, roofing, and “other remodeling services,” according to the official release. Renovo’s model focuses on purchasing majority equity within companies across the country, and in turn, offering a platform with advanced-level tools to support growth within their markets and beyond all while retaining their brand, identity, and existing leadership.
“We’re there to support them. We’re not just a holding company because we are providing best-in-class processes and systems in finance and accounting, HR, and information technology,” Renovo CEO John Dupuy told Pro Remodeler. “And we have significant resources that we’re bringing to the party to build out all of these areas. It’s great because for our companies to grow further, they can focus on what they do best, which is marketing, sales, and installation, and we can help them take these other processes to the next level.”
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Dupuy brings more than 20 years of experience working in private equity, including serving as the operating partner for firms Align Capital Partners, Z Capital Partners, H.I.G. Capital, and Arsenal Capital Partners.
Audax has completed more than 1,000 add-on acquisitions across multiple industries including industrial services and technology, software and technology, and consumer goods. It operates with a buy and build strategy.
Albuquerque-based Dreamstyle Remodeling, Maryland-based Remodel USA, and Long Island-based Alure Home Improvements are the first three companies under the Renovo umbrella. The three leading brands grossed more than $185 million combined in 2020. Renovo also offers a value-added partnership with these companies working together to discover the best business practices.
What it Means for the Companies
This announcement comes as a huge win for Dreamstyle which has sought out investors for several years in search of a winning fit to support its expansion goals, CEO Larry Chavez told Pro Remodeler.
Dreamstyle Remodeling offers bath and kitchen remodels, window, door, and siding services in New Mexico, Arizona, Colorado, California, Idaho, and west Texas. Opened in 1989, the company has completed more than 100,000 home improvement projects.
Chavez will remain as CEO until retirement and Dreamstyle’s leadership team will also continue in place, even assisting other companies under the Renovo umbrella.
“We developed a terrific brand in our markets and a basis of success and quality of leadership—and that was key, we wanted to continue our plans and continue with our brand and leadership and Audax was agreeable to that,” says Chavez.
“We are and are going to continue to be very active for a number of years here.”
As of now, Renovo will operate in the west coast, mountain west, mid-Atlantic, and northeast regions, but Audax officials say it will continue Renovo’s expansion through organic growth and a targeted acquisition strategy, with eyes already set on more companies.
“We’re always active on the acquisition front to bring in additional regional companies where it makes sense for both parties to come together,” says Dupuy. “We are and are going to continue to be very active for a number of years here.”
Dreamstyle already has plans to expand through California, further into Texas, and welcomes other opportunities to aggressively expand into new markets, but also plans to widen its product offerings.
Remodel USA President Khader Mughrabi says the next phase is also to expand—which was already the company's plan, but now can be executed faster with the help of Renovo—looking to finalize its move into New Jersey, the rest of Pennsylvania, then West Virginia, and the Carolinas.
Remodel USA offers Kohler kitchen and bath remodeling solutions and runs a home improvement division, serving the mid-Atlantic region. Remodel USA has run under the leadership of Mughrabi since December 2019.
"I think it's going to be fantastic for the customer most importantly," says Mughrabi. "It's going to give the customer three companies nationwide that will offer real quality products, home services, and installation."
Alure Home Improvements brings more than 75 years of experience, offering kitchen, bath, window, door, siding, roof, basement, gutter, and deck services, in addition to new construction and handyman services. It's been led by CEO Sal Ferro since 1989.
"We are thrilled to be partnering with Renovo and the other industry leaders involved. We welcome this great opportunity for growth and expansion," Ferro said in an emailed statement. "The partnership will not only enable us to help build more homeowner dreams, but also to provide even more opportunities for our employees who have help make our success possible. Most importantly, we will proudly continue to deliver the exceptional customer service to homeowners that has become synonymous with the Alure brand."