Landscape Firm Completes Business Merger With California Company
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Monday, July 7, 2014.
It is amazing what entrepreneurs can achieve when starting with little resources. One entrepreneur showed this to be true after he started his landscaping company, The Brickman Group, which eventually grew to be one of the largest companies in the landscaping industry. This company, which started in the back of a single pickup truck, is now looking to complete a business merger transaction with a company in California.
The company is now finalizing its merger with ValleyCrest Companies, which is set to happen after private equity firm KKR’s purchase of Brickman for $1.6 billion in Nov. 2013. The newly merged company will employ more than 20,000 workers and will earn an expected $2 billion in revenue. ValleyCrest and The Brickman Group will continue to market their own respective brands; however KKR holds majority ownership in the combined business entity.
The newly combined company will be able to draw on a wealth of industry experience. The Brickman Group was originally founded in 1939 by a horticulturist who operated the company out of his pickup truck. The company made significant gains in its growth during the 1960s and 1970s. ValleyCrest began operations in 1949 in California and is now known as one of the largest privately held businesses in the country.
Although combining the Brickman Group with one of the largest companies in California may seem like a potentially lucrative transaction, there are many things which can go wrong in this type of merger. This is why those looking to finalize a business merger agreement will need to make sure the agreement complies with all applicable rules and regulations. Also, legal contracts and paperwork need to clearly spell out the terms of the agreement in order to ensure all parties in the transaction are protected.
Source: Columbus CEO, "Maryland landscaping group merges with California's ValleyCrest", Thomas Heath, July 2, 2014