Private equity’s move into the home improvement industry makes another stride with Renovo Home Partners’ acquisition of Woodbridge Home Solutions, Dallas’ leading home services company.
Dallas-based Renovo Home Partners, the approximately six-month-old Audax Group-backed platform, acquired four major brands since its inception and before Woodbridge: Dreamstyle Remodeling, Remodel USA, Alure Home Improvements, and, as of last week, NEWPRO Home Solutions.
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Woodbridge Home Exteriors opened in 1989 and offers window, doors, siding, soffit and fascia replacements, in addition to quick turnaround bath and shower conversions and kitchen cabinet refacing. The company’s approximate 2021 revenue was about $69 million. Woodbridge brings Renovo deeper into the Texas and South Central markets.
CEO and Founder Mitchell Spector tells Pro Remodeler he will retain minority ownership in the company and his position as CEO, which was a key factor in the decision.
“When this whole opportunity came about—which was in early December—I really had no interest in some of the strategic companies coming in,” Spector says. “Woodbridge has always been about people, and I wanted to continue it to be about people, so I didn’t want the name change on the door and all the consolidation of management.”
Renovo runs on a buy and build model, purchasing high-performing companies with a history of strong growth, the company explains. The platform places leading brands under one management team with the goal of organic yet aggressive growth for regionally focused businesses. A near-term goal for Renovo is to enable cross-selling of products on a national scale.
RELATED: Private Equity Firm Acquires NEWPRO Home Solutions
As the name Renovo Home Partners suggests, each brand under Renovo’s umbrella gains access to insights and expertise from one another, another aspect that intrigued Spector.
“Joining forces with a company like Renovo gives us the ability to really scale the company and give us the resources with information systems, with data analytics, with best sharing practices, to really take this company to the next level, and most of all, give our people opportunities for growth,” Spector tells Pro Remodeler. “It's an opportunity for all of our people to share with some of these other great companies on the Renovo platform. It's really exciting.”
Private equity interest in the home improvement industry remains red hot, with this recent Renovo move marking the eleventh major acquisition in 2022 so far. Last year, acquisitions of major brands totaled about seven.
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