Trilantic North America to Invest in Home Franchise Concepts
Transaction to Support Next Growth Stage for Franchisor of Window Coverings, Other Home Services
The founding partners of Home Franchise Concepts (“HFC” or the “Company”) today announced they have entered into a definitive agreement with Trilantic North America whereby Trilantic North America will make a significant investment to support HFC’s next phase of growth. Following the close of the transaction, Trilantic North America will hold a majority stake in HFC, with the Company’s founders and management remaining substantial shareholders. Financial terms of the transaction were not disclosed.
Additionally, HFC’s founding partners are pleased to announce that upon the close of the transaction, current Chief Financial Officer Shirin Behzadi will become Chief Executive Officer of the Company. Ms. Behzadi joined the HFC team in 1999 and has served in her current role since then. Co-founder and current Chief Executive Officer Chad Hallock will become a member of HFC's Board of Directors and continue to help shape the strategic vision of the Company going forward.
HFC’s flagship franchise concept, Budget Blinds, was co-founded by its five partners in 1992 and has experienced robust growth across North America since inception. Over the past several years, the Company has expanded its franchise portfolio to include Tailored Living and Concrete Craft, and has become a leader in the home services category with more than 1,150 franchises across the United States and Canada.
“Trilantic North America is the perfect complementary partner to support our next phase of growth,” said Ms. Behzadi. “We see tremendous opportunity to continue to expand HFC beyond our current core franchise base and potentially add new shop-at-home service concepts to our already established platform."
Added Mr. Hallock: “We believe that we provide a compelling value proposition to our franchisees, key vendors and home owners everywhere. Trilantic North America is a leader in partnering with founder-owned businesses and we look forward to their strategic and financial support."
“HFC has differentiated itself in the home services industry by taking a thoughtful approach to its franchise model and empowering its healthy and growing franchise base,” said Charles Fleischmann, Partner at Trilantic North America. “We are excited to partner with Chad, Shirin and the entire senior management team given their successful track record of nurturing and growing leading franchise businesses and to support the Company in its next chapter of development.”
Ernst & Young Capital Advisors, LLC and Carolina Financial Group acted as financial advisors to HFC and Trilantic North America, respectively. Pillsbury Winthrop Shaw Pittman LLP and Kirkland & Ellis LLP provided legal advice to HFC and Trilantic North America, respectively. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2015.
Nov 10, 2015
Trilantic Capital Management L.P. (“Trilantic North America”) is a private equity firm focused on control and significant minority investments in North America. Trilantic North America’s primary investment focus is in the business services, consumer, energy and financial services sectors. Trilantic North America currently manages four private equity funds with aggregate capital commitments of $5.7 billion. For more information, visit www.trilantic.com.
About Trilantic North America
Home Franchise Concepts (“HFC”) is a leading franchisor in the home services category and parent company to franchise brands Budget Blinds®, Tailored Living® and Concrete Craft™. Based in Orange, California, HFC offers low investment, home-based/small warehouse franchise opportunities in the United States, Canada and Mexico. For more information on HFC and its franchise opportunities, visit homefranchiseconcepts.com.
About Home Franchise Concepts