KKR to Acquire A1 Garage Door Service in $2 Billion Deal, Sources Say

Investment firm KKR & Co. has agreed to acquire A1 Garage Door Service, a major provider of residential garage door repair and replacement, for a price of around $2 billion, according to people familiar with the matter. The deal highlights continued private equity interest in the home services industry, which is valued for its consistent revenue and fragmented market structure.

Deal Details

Founded in 2007 by CEO Tommy Mello, Phoenix-based A1 Garage Door Service has grown into one of the largest companies in its niche, with operations in approximately 20 states. The company received a growth capital investment from private equity firm Cortec Group in 2022, which is now selling its stake to KKR.

According to the original report, representatives for KKR and Cortec Group declined to comment on the transaction. A1 Garage Door Service could not be reached for comment.

Home Services M&A Heats Up

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The acquisition is part of a broader trend of mergers and acquisitions in the residential services space, as investors are attracted to the sector's steady cash flows and opportunities for consolidation. This year has already seen significant activity, including Oak Hill Capital's acquisition of Guild Garage Group for a sum reported to be over $800 million.

KKR's Sector Experience

This deal expands KKR's existing portfolio of residential service companies. The firm has demonstrated its commitment to the sector through prior investments, including:

• Neighborly: Acquired in 2021, Neighborly is one of the world's largest franchisers of home service brands, spanning plumbing, pest control, HVAC, and home inspection.
• Groundworks: In 2023, KKR made a significant investment in this provider of residential foundation and water management services. Cortec Group is also an investor in Groundworks.