HFC Buys 4th Franchiser
by Paul Hughes, originally published on ocbj.com on January 3, 2019
Home Franchise Concepts in Irvine on Jan. 1 bought AdvantaClean in Huntersville, N.C., on undisclosed term, its fourth home-improvement franchise system. It already owned Budget Blinds, Tailored Living and Concrete Craft.
Advanta franchisees provide mold remediation, water damage restoration, and duct and vent cleaning services in 230 markets in 37 states. HFC’s other concepts sell window coverings, home organizing, and floor design franchises.
With the buy, it has 1,700 territories in North America, with systemwide sales of roughly $700 million and revenue of more than $50 million. Systemwide sales are the total dollar value of transactions; revenue to HFC comes largely from franchise fees on that business. Advanta Clean franchises sell for $49,000, more than twice the price of each of the other three.
Equity investor Trilantic Capital Partners LP in New York bought most of HFC from its five founders in 2015. It typically puts $50 million to $250 million into firms with an enterprise value of up to $1 billion.
HFC has strengthened its corporate structure of late, taking 38,000 square feet of space for an Irvine headquarters last year—nearly double its previous totals in Orange—and adding C-level execs in technology, development and marketing.
Chief Executive Shirin Behzadi is on the OC 500.
Richmond, Va.-based investment bankers Boxwood Partners LLC advised AdvantaClean on the transaction.
