By Abigail Summerville
NEW YORK, Sept 2 (Reuters) – Investment firm KKR & Co has agreed to buy residential garage door repair and replacement company A1 Garage Door Service for around $2 billion, according to sources familiar with the matter.
The deal adds to a wave of home services M&A including Oak Hill Capital’s $800 million-plus acquisition of Guild Garage Group this year. Private equity firms have been acquiring residential services companies because of their steady cash flows and high values in fragmented markets.
Phoenix, Arizona-based A1 Garage was founded in 2007 by CEO Tommy Mello, who grew the business into one of the largest residential garage door service providers in the country, operating in around 20 states. In 2022, A1 received growth capital from the private equity firm Cortec Group.
KKR and Cortec declined to comment. A1 Garage could not be reached for comment.
KKR already has experience in the residential services space through its investments in Neighborly and Groundworks.
In 2021, it bought Neighborly, which it called the world’s largest provider and franchiser of home service brands including plumbing, pest control, restoration, electrical, cleaning, HVAC and home inspection. In 2023, it made a significant investment in Groundworks, which provides residential foundation and water management services. Cortec is also an investor in Groundworks.
(Reporting by Abigail Summerville in New York, edited by Colin Barr and David Gregorio)
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