Breaking News: Sept. 1998, Landcare USA, Tru-Green ChemLawn

HOUSTON, Texas - LandCare USA announced its first acquisitions since seven companies merged to form LandCare USA on June 4, 1998. The newly acquired companies are:

• Landscape Resources, Dallas, Texas
• Clean Cut, Austin, Texas
• Horticultural Industries, Sarasota, Fla.
• Gator & Gator Landscape, Longwood, Fla.
• Continental Landscape Management, Phoenix, Ariz.
• Landscape West, Anaheim, Calif.
• Redwood Landscape, Santa Rosa, Calif.

Combined, the seven companies bring $65 million in annual revenues to LandCare USA, in addition to the $118 million acquired with the company’s formation.

Bill Murdy, LandCare USA chairman and chief executive officer, said the principal individuals with each of the companies have agreed to continue on with the organization.

In addition, LandCare USA announced it has entered into letters of intent or closed transactions with companies representing an additional $40 million in revenues. These companies will be identified when the transactions close in late August or early September.

Although specific acquisition prices were not disclosed, LandCare USA said the purchases were funded through a combination of stock (81 percent) and cash (19 percent).

In a separate announcement, LandCare USA released its second quarter earnings with revenues of $38.3 million and net income of $1.9 million, compared with $30.6 million and $1.8 million for the second quarter of 1997. Reported revenues for the first half of the year were $64.9 million, compared to $54.1 million in 1997.

The company’s stock price, which topped out at $10 1/8 per share in late July after opening at $8 per share on June 4, was slightly above $7 per share as of press time.

-Bob West

TruGreen-ChemLawn Buys Ruppert, One Other

MEMPHIS, Tenn. - Ever since acquisitions began in the landscape maintenance industry, people have wondered what course of action would be favored by the Ruppert Landscape Co., Ashton, Md.

That question was answered with the announcement of TruGreen-Chem-Lawn’s acquisition of the $40-million firm, which was immediately followed by the announcement of TruGreen-ChemLawn’s acquisition of California Landscape Co., Anaheim, and its $18 million worth of revenues.

Craig Ruppert, company president, will become vice president in charge of landscape installation services for TruGreen-ChemLawn.

These deals now raise TruGreen-ChemLawn’s landscape maintenance revenues to between $115 and $120 million, with three more acquisitions expected to be announced shortly.

“Ruppert brings us a great reputation on the East Coast as well as an established presence in major markets such as Philadelphia, Baltimore, Washington, D.C., and Richmond, Va.,” noted Paul Anderegg, senior vice president of operations, for TruGreen-ChemLawn, who added that the company is far from done with acquisitions.

“We haven’t even opened ourselves to acquisition possibilities within the general industry yet,” he noted. “We’re still identifying platform companies and tuck-in candidates in cities of interest.”

Clearly, the maintenance industry is where TruGreen-ChemLawn sees its future lying – with a targeted service mix for this division of 70 to 80 percent maintenance and 20 to 30 percent installation – as Anderegg estimated the overall market for landscape maintenance services from commercial clients at $22 to $23 billion nationwide.

- Cindy Code