Home / Business and Economy / KKR Buys A1 Garage for $2 Billion
KKR Buys A1 Garage for $2 Billion
2 Sep
Summary
- KKR is acquiring A1 Garage Service for approximately $2 billion.
- A1 Garage Service operates in about 20 states nationwide.
- This deal follows a trend of private equity in home services.
KKR & Co. has reached an agreement to acquire A1 Garage Door Service for an estimated $2 billion. This significant transaction underscores the ongoing robust activity in the home services mergers and acquisitions market. A1 Garage, established in 2007 by CEO Tommy Mello, has grown into a major national provider of residential garage door services.
The company currently operates in approximately 20 states, offering a wide range of repair and replacement services. In 2022, A1 Garage received substantial growth capital from private equity firm Cortec Group, indicating its strong potential and market standing prior to this acquisition.
This deal is part of a larger pattern where private equity firms are targeting residential services businesses. These companies are attractive due to their consistent cash flow generation and the opportunity for consolidation in fragmented markets. KKR itself has prior experience in this sector, holding investments in companies like Neighborly and Groundworks.
