The Brickman Group to be Sold

[desii]

The Deal.com recently reported that Lehman Brothers has engineered a deal for Leonard Green & Partners LP, Los Angeles, to buy the Brickman Group Ltd., in a $847 million recapitalization. The Deal , an online product of The New York Times, reported that it learned of the proposed transaction through regulatory filings.

Founded in 1989, Leonard Green & Partners L.P. describes itself as “a pioneer” in the development of the leveraged buyout industry. “We have repeatedly demonstrated our ability to successfully originate, negotiate, consummate and realize investments in a variety of different industries and economic environments,” it says on its Web site. “We partner with management to enhance the value of companies through operational improvements, acquisitions, financial engineering and other strategic initiatives.”

According to the The Deal, the founding Brickman family owns 54% of the company, other managers 10% and CIVC Partners, Chicago, holds 36% of the company. CIVC acquired its stake in the company in a leveraged recapitalization in 1998, the same year that then 35-year-old Scott Brickman became CEO of the company. That infusion of venture capital allowed the Brickman Group, led by Scott Brickman, taking over from his father Richard Brickman, to aggressively grow its network of branch locations across the country by acquisition.

In 2002 the company went through its second recapitalization through a $150 million senior subordinated debt offering, according to The Deal.

Long-envied by other landscape operations for its efficient services delivery systems, the Brickman Group recorded revenues of approximately $100 million in 1998. Today the company’s 135 branches with 6,000 employees in 35 states, generated about $460 million in revenues its latest fiscal year.

Two of the company’s most notable recent acquisitions included Lakewood Landscaping, Troy, MI, and, this past fall, Mike Rorie’s Groundmasters, the market-leading landscape maintenance operation in the tri-state area surrounding Cincinnati, OH. Sources put the sale price at approximately $30 million.

The Deal reported that the Brickman management team will remain in place.

[AintNoFun]

man those are some big numbers. i think i read somewhere that micheal dell is a major shareholder in valleycrest now..

[mrusk]

Yes michael dell's private invesment company is the leading shareholder of valley crest.

[Team Green L&L]

I live in the Ground Master's relm. I have seen them blow up over the past decade because I actually lived within rock throwing distance of their first office adn know some of the foreman. I do know for a fact that Mike has built the company from the ground up. The first year in business Ground Master's only did $38,000 in gross sales, but this was in the late 80's. They saw tremendouse potential in the suburban growth around the Cincinnati area in the early to mid 90's and pownced on it. Ground Master's way of doing business was agressive. Most of their contracts were multi year contracts from the beginning. They did not sign yearly contracts, and also did not mess with C and D class properties. The only way they signed contracts is if they got to take care of everything, not just mowing but the whole 9 yards. They teamed up with some of the premeir home builders, then aquired all of Proctor and Gambles business and the rest is history. It seemed like by last year you saw a Ground Master's truck parked in every Commercial property around the Tri-county area. At the time he sold the business he had 5 locations from northern Kentucky to Columbus OH. and was doing about 30 million a year in gross sales. Out of the office by my house they did 10,000 yards of mulch a season on average just as an example of the volume of business they did.

[Az Gardener]

I wonder what Mike thinks of the acquisition? He does not seem like the kind of guy that is ready to ride off into the sunset with his cash or conform to others management styles. Hope all works out for him.

[turftrimmer]

Its amazing how anyone would want to buy out such a low balling company as Brickman. They came into the Cincinnati area, in Blue Ash, and dominated sales in ground maintenance for the past 4 years at least. Before this everything was Groundmasters, Davey tree, Prolawn Proscape, Mike Ward, Lawn Systems, Fredricks... Groundmasters was the biggest and best for the commerical business. The point I'm trying to get is that they (brickman) came in here with all of these well established landscape co.'s and still took over the majority of the market. What are there profit margins? They must be minimal because theres no way they could have come here for two years and became the majority share holder of commerical grounds maintenance without being a lowballing company. When you are all ready almost a nationwide landscape company is there a need to lowball. Maybe we should raise MINIMIUM WAGE:usflag:. Or then would Brickman just have a company with no profit margins just gross wages.

[Az Gardener]

When you are that large you have the economy of sale working for you. I have to make my wage on 5-7 guys but with good business practices I could oversee 30 so my wage could be divided over 30 workers as opposed to the 7.

If you consider the office systems one payroll person can do 30 or 3,000 paychecks they make the same money. Then consider how much cash they are sitting on before they deposit the tax money they are gaining interest on that.

I know I pay 60.00 per hour for service work on my equipment. They have mechanics working for 15-18 per hr.

Then there is the land. They have been in business so long that many of their facilities are paid for. How much less could you charge if you were not paying a mortgage or leasing land for the biz?

Then there is their purchasing power they pay less for fertilizer than my distributors I would bet. They grow many of their own plants for install work.

I could go on but you get the picture.

[anj]

I Saw One Of Those Trucks In My Area Today. I Did Not Think They Would Come So Far South.

[RyanVT2005]

They didn't buy Brickman. They are a capital investment firm meaning they are willing to pay Scott Brickman and the company that money to reinvest in the company in the hopes that in 5, 10, 15 years, whatever the time frame might be Brickman would have grown and made a profit for them on their original investment

[RyanVT2005]

Brickman doesn't low ball anything. Most of the company is run at a 35-55% gross margin. Throughs years of experience, economy of size and efficiency there are able to compete in any market they decide to move into.

[lawnspecialties]

Either way, they blew it. I would have sold them mine for just 1 million.payup

[RyanVT2005]

And more than likely they'd take your 1 million dollar operation and turn it into a 10million dollar opertion in 5 years

[JJLandscapes]

Its amazing how anyone would want to buy out such a low balling company as Brickman. They came into the Cincinnati area, in Blue Ash, and dominated sales in ground maintenance for the past 4 years at least. Before this everything was Groundmasters, Davey tree, Prolawn Proscape, Mike Ward, Lawn Systems, Fredricks... Groundmasters was the biggest and best for the commerical business. The point I'm trying to get is that they (brickman) came in here with all of these well established landscape co.'s and still took over the majority of the market. What are there profit margins? They must be minimal because theres no way they could have come here for two years and became the majority share holder of commerical grounds maintenance without being a lowballing company. When you are all ready almost a nationwide landscape company is there a need to lowball. Maybe we should raise MINIMIUM WAGE:usflag:. Or then would Brickman just have a company with no profit margins just gross wages.

hate to break it to you but you cant badmouth the number 1 landscape company in the US when you are a nobody. Thats like a mechanic at a gas station talking bad about chip foose

[ACutAboveNC]

Wow JJ, you sure are arrogant. He has a right to bash Brickman because they strongarm people out business. They are bullies but that does not make them a bad company, just a profitable one. Oh and JJ you still only have a mortgage, that does not mean you own the house yet and you probably lease the benz. I'm glad to see that you are doing well with your business but do not rub it in people's faces because it is just rude. All that could be gone tomorrow and all you will be is just a slave.

[PatriotLandscape]

22 with no degree is nothign to be proud of. Just cause you got the mortgage doesn't mean you can afford it.

[JJLandscapes]

wwwwwwwwwwwwwwwwwwwwwwww edit

[Albemarle Lawn]

I wonder how many automatic transmissions per day Brickman puts in Hispanic driven Ford trucks on a national basis?

[greg1]

I wonder how many automatic transmissions per day Brickman puts in Hispanic driven Ford trucks on a national basis?


:usflag: :usflag: :usflag: :usflag: :usflag: :usflag: :usflag: :usflag: :usflag:

[AintNoFun]

just curious how they "strong arm" people out of business?


Wow JJ, you sure are arrogant. He has a right to bash Brickman because they strongarm people out business.

[ACutAboveNC]

They have the leverage of being a national company with almost unlimited resources. They have the capital and man power to push most small business out of the way because of who they are. That is fine by me bc I hate commerical accounts.

[RedWingsDet]

I saw the first brickman truck this past weds. Im starting to get nervous now. But then again 90% of my customers like me and understand why im more expensive than the others. But, with Michigans econonmy, I didnt think they would come here.

[BPC]

I Saw One Of Those Trucks In My Area Today. I Did Not Think They Would Come So Far South.

There are in Orlando, Florida.

[RyanVT2005]

It is amazing the skewed perspective most people on this site have about Brickman. What are you in business for? To make money! Turns out they do it better than you. Just because they are more efficient, have better control of their actual operating cost and have the economy of size to do the same work cheaper than you doesn't mean they are strong-arming you out of business! It means they are better than you, and if they aren't guess what? You'll get the work back because it'll go back out to bid.

Believe me every company has their flaws, and Brickman is no different. But being big isn't a flaw, and it's not their job to keep you in business. Want to beat them? Be different, be unique, gain better control of your operating functions and expenses.

[PROCUT1]

It is amazing the skewed perspective most people on this site have about Brickman. What are you in business for? To make money! Turns out they do it better than you. Just because they are more efficient, have better control of their actual operating cost and have the economy of size to do the same work cheaper than you doesn't mean they are strong-arming you out of business! It means they are better than you, and if they aren't guess what? You'll get the work back because it'll go back out to bid.

Believe me every company has their flaws, and Brickman is no different. But being big isn't a flaw, and it's not their job to keep you in business. Want to beat them? Be different, be unique, gain better control of your operating functions and expenses.


couldent have said that any better

[Marcos]

The 2007 season was the first full year in which Brickman had full operational controls over the direction of "Groundmasters" accounts in this region.
And already, you can tell see the difference it's making in the general decay in overall site appearances, equipment upkeep, and quality of their employees, compared to the very tight ship that was run by exclusively GM people.

[MJK]

Do they do Landscape Installs or just mowing?

[bigclawnman]

Do they do Landscape Installs or just mowing?

Your kidding right?

[MJK]

no, are they a Maintenance contractor or a full service contractor? From what I have read on this site, everyone only brings up the maintenance work.

[big acres]

I think there is a place for the Brickman's of the world. I notice they are agressive towards the big commercial stuff, where they can babysit an army of low paid laborors.

I watched their crew cut a small site with terrible inefficiency, and missing entire sections of lawn all together. The quality was horrible, and the customer told me so. I am not worried about them, or the other big companies using cheap labor.

We thrive on mid-size and small properties that require our crews to move in more like a tactical swat team, and then move on to the next just as fast , cutting over a dozen commercial properties per day. Our smaller crews require more licensed drivers and foreman qaulity people who can pick up the ball when someone is out. The h2b crew will never compete with our local guys on this level of efficiency.

[SILVERSTREAK INC]

brickman never was sold they just changed over investment partners some 1.5 years ago

brickman used to be 70% installs and 30% maintenance (the used to only offer maintenance contracts to the high-end installs they did)

now its the oppositte, say a branch runs 10 crews (most branches run between 5 and 15 crews) well 8 of them would be cutting and 2 would be landscape installs, renovations, or other large work orders.

Out here they have their own branch that travels the east coast for tree work, a traveling mulch blower crew, and a tri-state irrigation install/service branch

[greenturfde]

i just read this book the E myth revisited... i think it's a great read if you guys get a chance. honestly i don't know much about brickman.. they do a little work down here in delaware and they lost the outlet center (what i was told) due to shotty work. but that book really gave me insight on how these companies seem like they are low balling. most of us.. me included got into this because we liked working outside. alot of the bigger companies were started by business gurus who just picked lawncare/landscaping as their business.. anyway hope that makes sense.

[jwingfield2k]

Brickman started being mostly an installation company, but shifted their focus years ago to doing more maintenance than installs. They will still do both, but their focus is on maintenance.

I don't care if Brickman got bigger. If you guys knew the secrets they knew, and you were as big as they were, would you complain? I doubt it. We're all in this business to make a living, just deal with it and stop acting like this is the first time you have heard of a large company. Ever heard of Walmart or Target before?

[koster_irrigation]

What kind of profit margins do these big companies shoot for on commerical work?

[TScapes]

These guys are running 35-45% GP on most commercial jobs, atleast in the South. Sometimes it may be a little lower, but this may be just for the maintenance. A lot of the time these same jobs have a HUGH work order budget that more than makes up for it. Plus their monthly sales goals for work orders for one branch is probably more than most LCO's make in a year on here. They run a TIGHT SHIP when it comes to their money and making a profit. There are no excuses, everything stops with the almighty buck! If a Branch Manager sees that one specific area is over budget, it gets fixed immediately. Their end of the month closings are brutal!

But atleast this last year, after the injection of the new investment money to the company, the Branch Managers and all upper level managers received HUGE bonuses at their annual retreat. I am sure that made up for all the stress they put these guys through. And they are continuing to purchase companies! They bought Bozzuto (?Spelling?) just this last December. So shelling out 25million here and there is not an issue for them, as long as they continue to grow and make money while they do it.

For me on the other hand, I would prefer to compete against them than join the likes of them!:nono:

[pinto n mwr]

Why worry?
Sure they may be big, strong, overpowering...
They are in this region but it does not concern me one bit. Their quality is poor, prices are high, and they do not plow snow.
All the national companies that have came to town have failed or are failing... Snowplow, what's a snowplow?

[Whitey4]

They can't touch Long Island... too many lowballers. I had a new prospect just the other day.... oh, last year I paid $18! I said, yeah, and look at the mess you have for a lawn. It's rutted, compacted, and full of weeds. You get what you pay for. I did give her a property report and quote with full apps, aeration, everything. I don't expect to pick her up, but I've been surprised before.

[Marek]

I have a freind that worked for Buzzuto , havent talked to him in a few months but will call him and ask how things are going. Around here Brickman is everywhere, and thier work is very good . They do snow removal now and they pay thier subs very well and with in 2 weeks. The prices I have seen for thier maintenance are fairly low , but the rest of thier prices are not lowballed by any means. Not sure how they are around the rest of the country but around here they are a good quality company. Here they trade in thier mowers every 2 yrs . The average mower has 1400- 1500 hrs on it when they trade it. As far as transmissions, who cares they are all under warranty anyway, and even if they arent I'm sure they have spares on the shelf. Once they deprciate something out its gone and a new piece is brought in. Imagine the buying power you have with a company like this. You call Exmark and say I need 2000 zs this year and 1500 next year. How much of a better deal are they getting compared to us? Trimmers and blowers are bought by the trailer load. Labor , H2B , mulch 40 ,000 yrds compared to the 3000 that we do,trucks, and so on.When you put a little thought into it you can see why thier pricing can be lower than others. As far as giving a more personalized service, that is all in the hands of the area manager, much like our own companies. Imagine what you could do with a full time sales staff that all thier job was to do is estimate and quote jobs, then it is handed off to the next department. The more I learn about them the more I would like to know, it seems as they have a very good business model established.

[desii]

Well said Marek. Didn't Bozzuto own most of the properties or own a management company as well and them maintain them? That is alot of buying power that definitely comes into play when purchasing equipment / pricing jobs.

[TScapes]

I believe that Bozzuto did have either a development company or realestate management firm, but just the landscaping division was sold to Brickman. From what I was told, they don't just buy whomever. They make smart purchases that will benefit them in various ways, whether that empowers them in a certain market, or simply solidifies their presence where ever they are now.

[grassaholic]

The 2007 season was the first full year in which Brickman had full operational controls over the direction of "Groundmasters" accounts in this region.
And already, you can tell see the difference it's making in the general decay in overall site appearances, equipment upkeep, and quality of their employees, compared to the very tight ship that was run by exclusively GM people.

I will have to agree with you on the "decay in site appearances". I have watched Groundmasters grow over the years and always admired the good work that they did. They used to have higher prices than the smaller companies in town. I lost an entranceway/clubhouse in a high end neighborhood to them last year. I could not believe how much cheaper they were than me. The price per cut is a good example. My price was $75 per cut, their price was $35 per cut. I had been taking care of this account for 11yrs. In those 11yrs. my mowing price had gone from $60 to $75 per cut. The quality of their work was not nearly as good as mine but I guess it's good enough. Sometimes I wonder if I should sign up for some H2B workers and lower my prices and let the quality slide. After all thats how the big boys do it.