Brickman and ValleyCrest Merger Complete, Questions Remain

Well, it’s official. The Brickman Group and ValleyCrest merger is complete (effective June 30, 2014). Andrew Kerin, of Brickman, will serve as chief executive officer of the combined company. Roger Zino, from ValleyCrest, is the new company’s vice chairman.

The company will continue to maintain its primary locations in Rockville, MD, and Calabasas, CA. KKR (Brickman) has majority ownership of the combined company and MSD Capital (ValleyCrest) retains a significant minority ownership interest. For now, both brands will continue to operate as the organizations “come together”. But that leaves us wondering, what will happen when they “come together”?

In the example of Green Industry equipment manufacturers that are often acquiring other brands and lines, what’s acquired isn’t always desired in its entirety. Some specific parts or segments may have value and be worthy of inclusion and investment. Others may fall to the wayside after the transitional period is complete. It is likely that ValleyCrest and Brickman will conduct assessments of the strength of their individual brands in the marketplace. When they will complete their transition—and the business model that will be presented—remains a mystery. But the majority shareholder may be a clue.

Rather than just waiting to see how the alliance performs, competing contractors should jump into action and find ways to strengthen their own companies. Look for ways to improve your processes, diversify your offering, and create tighter bonds with your customers. As this merger morphs into what will be a landscaping powerhouse, set yourself up to be a strong competitor when it emerges.

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