About the Company:
Founded in 2010 by brothers Corey and Wilson Schultz, with locations in Richmond, Waverly, and Hampton, VA, Schultz Lawnscapes, Inc. (“Schultz” or the “Company”) is a leading provider of landscaping services across Central and Southeastern Virginia. Schultz offers services to commercial properties, multi-family operators, industrial facilities, homeowners’ associations, government entities, healthcare facilities, and high-end residential properties.
Sell-Side Mandate:
The Lenox Group was introduced to the Schultz brothers and their team by the Company’s accounting relationship. The brothers had been preparing the Company for a transaction over the last several years and began receiving inbound interest to be acquired. Lenox was brought in to educate Corey and Wilson on the different liquidity scenarios that existed for the business in the current market environment. As part of that process, Lenox performed a market valuation of the business to educate the sellers on the potential upside that would come from running a process and creating competition.
The brothers then engaged Lenox to sell the business. The transaction team worked alongside Schultz to develop marketing materials, create a financial model and bespoke financial analysis, market the Company to prospective buyers, negotiate deal points, administer management presentations, negotiate Working Capital, and complete all aspects of transaction due diligence.
Outcome:
The Lenox Group successfully helped Schultz complete a Majority Recapitalization of the business with HeartLand, LLC (“HeartLand”), a portfolio Company of Chicago-based Pritzker Private Capital. Founded in 2016 and based in Kansas City, MO, HeartLand is the fifth largest landscaping company in the country. With more than 4,000 employees and more than 60 branches across 26 states, HeartLand offers commercial landscaping services to over 15,000 customers. The transaction allowed HeartLand to expand into the Richmond metro area and allowed Schultz to find a partner that could assist the Company in its continued growth. The brothers each rolled equity as part of the consideration. Following the transaction, Corey Schultz was able to transition out of his day-to-day owner responsibilities and remain active in a strategic advisory role, while Wilson Schultz will remain as the day-to-day leader of Schultz.