Scotts Miracle-Gro will maintain a 30-percent interest in the new entity, which will operate as TruGreen and will be based at TruGreen’s corporate headquarters in Memphis, Tennessee.
“By bringing together the two most innovative brands in the industry, our combined expertise will give customers a lawn they love, with a certified, trained and experienced workforce …,” said David Alexander, TruGreen president and CEO. “This opportunity further accelerates the transformation TruGreen has experienced in the last two years, achieving significant gains in revenue, customer growth and employee satisfaction.”
Alexander will lead the combined company, according to a TruGreen news release on the deal.
TruGreen is owned by private equity firm Clayton, Dubilier and Rice (CD&R), and the new company will continue to be privately held, with CD&R as majority owner. John Compton, a CD&R operating partner and former PepsiCo president, will continue to serve as TruGreen’s chairman.
“We believe strongly in the commercial logic and exciting long-term growth prospects of merging these two great brands,” Compton states in the TruGreen news release, “and we expect our combined capabilities to offer a highly compelling value proposition to customers.”
Following the merger, TruGreen’s local network of branches and franchise locations will serve approximately 2.3 million residential and commercial customers in the United States and Canada. With about $1.3 billion in revenue, the new entity will offer lawn, tree and shrub care.
Jim Gimeson, president of Scotts LawnService, will join TruGreen as chief operating officer.
The merger is expected close in the first half of 2016.
