Together Again: Dwyer Group Reunites with Riverside
August 21, 2014
The Riverside Company has reacquired The Dwyer Group, which it previously owned for seven years, from TZP Group. Dwyer is a holding company for seven service-based franchise organizations—including plumbing provider Mr. Rooter—which combine for more than 1,600 franchisees worldwide and around $1 billion in annual revenue. It was backed in 2003 by Riverside, which agreed to sell the company to TZP in late 2010 for approximately $150 million, realizing a 3x gross cash-on-cash return. During the TZP holding period, Dwyer’s EBITDA grew by more than 60%.
Madison Capital, GE Capital, NXT Capital and Ares Capital provided financing for the reacquisition, which included a significant investment from Dwyer management. According to the Waco Tribune-Herald, the deal featured a $1 million bonus for Dwyer’s roughly 500 employees to be split up based on time worked at the company.