The Bottom Line: NewSpring Invests in Green Home Solutions
September 27, 2023
NewSpring ("the Firm"), a family of private equity strategies, announced today that NewSpring Franchise, the Firm's strategy dedicated to investing in innovative franchise and multi-unit concepts, has completed a controlling investment in Green Home Solutions.
Green Home Solutions is a leading home services franchisor providing mold remediation and indoor air quality services
Green Home Solutions creates a clean indoor air environment by providing mold remediation, indoor air quality improvement services, odor removal, and allergen control solutions to a wide range of residential and commercial customers across 35 states. The business provides an environmentally friendly approach to remediation services, never using harsh chemicals and practicing strict adherence to IICRC- and EPA-approved guidelines. The franchise currently operates through over 70 franchisees across more than 200 territories in the U.S. With NewSpring’s support, Green Home Solutions intends to rapidly expand its footprint over the next several years.
The investment will be used to grow the Green Home Solutions brand on a national scale
This investment will be used to support an accelerated growth plan to scale the business nationally in new markets while launching new services to provide customers holistic indoor air quality solutions.
"Green Home Solutions has experienced significant growth with a strong franchisee base since its founding in 2014. We are now at an inflection point to make additional investment in our infrastructure to accelerate growth further. NewSpring Franchise has a proven track record of supporting emerging franchisors, and we look forward to working with them and their value creation network to reach new levels of growth.”
This transaction aligns with NewSpring Franchise’s focus on capital-efficient, consumer-facing, multi-unit businesses
This transaction is the first investment made by NSF II, NewSpring Franchise’s dedicated investment fund, and is consistent with the strategy’s approach to investing in established multi-unit services businesses with a strong customer value proposition, proven unit-level economics, and exceptional management teams in the lower-middle market. NewSpring Franchise is led by Satya Ponnuru and Pat Sugrue, who bring over 50 years of combined investing and operating experience in multi-unit brands. Recent investments in consumer service franchise brands include Blo Blow Dry Bar and Central Bark.
Green Home Solutions is run by an innovative, growth-oriented management team
“The residential services market is experiencing significant growth due to the consumer demographic and behavior trends of increasing homeownership rates, the outsourcing of home services, and the rising average age of houses. Mold remediation and air quality control services will benefit from these trends and largely remain unaffected by macroeconomic downturns. Green Home Solutions has established itself as a leader with strong franchisees and a unique service offering. We look forward to working with Jeff Panella and the management team as they continue to rapidly scale the business.”