LandCare, TruGreen-ChemLawn Deal Closes
MEMPHIS, Tenn. - Perhaps the most talked about acquisition ever in the green industry was finalized March 18 when LandCare USA, Houston, Texas, and the landscape maintenance division of TruGreen-ChemLawn, Memphis, Tenn., joined forces to create a company expected to produce more than $600 million in sales in 1999.
The 13-month-old LandCare brought about 40 companies to go with the nearly 20 acquisitions completed by TruGreen-ChemLawn.
The new landscape maintenance organization, which is currently evaluating potential new names, will be headed by Bill Murdy as president and will operate as a division of TruGreen-ChemLawn, which is run by Dave Slott.
Murdy's management team will include Paul Anderegg as executive vice president/chief operating officer, Judy Guido as national director of marketing and sales, former LandCare USA chief operating officer Hal Cranston as vice president of the western division, David Minor as vice president of the southwestern division, Roger Braswell as vice president of the eastern division and Gene Kidd as vice president of the northern division.
LandCare also announced it completed five more acquisitions that will serve as "tuck-ins" for markets it already serves: Laflamme Services, Bridgeport, Conn.; Total Grounds Systems, Orlando, Fla.; Michael/Todd, Orlando, Fla.; Coscia & Sons, Barto, Fla.; Showcase Landscape Maintenance, Minneapolis, Minn.; and Corporate and Commercial Services, San Jose, Calif.
ServiceMaster also announced that for the purposes of the deal, its stock would be valued at slightly more than $18.52 per share, and LandCare stockholders will receive .55 shares of ServiceMaster stock for each share of LandCare stock they own. LandCare's stock has been holding around $10 per share since the announcement of the deal with TruGreen-ChemLawn.
Blower Battle Rages On
SANTA ANA, Calif. – Contractors in California and nationwide can expect the "ban the blowers" effort to pick up steam in light of recent claims by the Orange County Grand Jury.
The grand jury's report was based on four hazards it claims two-cycle gasoline engine leaf blowers present to people:
- The grand jury equated the amount of exhaust pollution per leaf blower to the amount of smog from 17 cars driven in one hour.
- The grand jury claimed about 5 pounds of particulate matter per leaf blower per hour are swept into the air.
- The grand jury claimed leaf blowers in Orange County sweep 20 tons per day of small size particulate matter into the air.
- Gasoline-powered leaf blower noise was termed a danger to the health of the blower operator and an annoyance to the non-consenting citizens in the area.
- The claims made by the grand jury are ridiculous and without justification," noted Robin Pendergrast, a spokesperson for Echo, Lake Zurich, Ill. "But the implications of these claims are far reaching, and we as an industry have to take this very, very seriously."
The grand jury went on to claim that the health hazards citizens are exposed to from leaf blowers "outweigh the questionable economic benefit blowers may bring," which led to a recommendation against using these products.
More than a dozen California cities have already banned the use of gasoline-powered blowers, and the grand jury's findings represent a formal recommendation to all city and county maintenance operations in Orange County to cease using gasoline-powered blowers.
The grand jury also refuted contractors' claims that using rakes and brooms would require longer cleanup times saying no facts were presented to prove this.
Further hearings will be held after a public comment period concludes May 16.
Riverdale Sold
GLENWOOD, Ill. - Perhaps the most talked about acquisition ever in the green industry was finalized March 18 when LandCare USA, Houston, Texas, and the landscape maintenance division of TruGreen-ChemLawn, Memphis, Tenn., joined forces to create a company expected to produce more than $600 million in sales in 1999.
River-dale Chemical Co. has enjoyed record growth the last few years and has high expectations for the future after the family-owned company was sold to Nufarm, an Australian-based pesticides producer.
The deal gives Nufarm its first significant North American presence and provides Riverdale with increased capital and access to more proprietary products.
Riverdale had been owned by the Champion family, and Jim Champion will remain as president of the $42-million organization specializing in production of phenoxy herbicides and fungicide formulations.
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Explore the April 1999 Issue
Check out more from this issue and find your next story to read.
Latest from Lawn & Landscape
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- Our April issue is now live
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