MIAMI LAKES, Fla. (June 27, 2011) – Leveraging new capital resources and new executive leadership, The Service Companies (TSC) are accelerating growth in anticipation of the group's 25th anniversary in 2012. In March of this year, private equity firm Vision Capital joined DLJ Merchant Banking Partners (a Credit Suisse affiliate) as an equity investor in The Service Companies. Vision Capital's investment provides TSC with further resources to invest in best practices, equipment and acquisitions to fuel continued growth. "We are so grateful to have Vision Capital join DLJ as investors in TSC," commented newly appointed CEO Steve Wilson. "Our two equity partners are best-in-class and serve to ensure that we can adapt quickly and invest in people, processes and technology to accelerate the growth trajectory that we have worked so hard to establish."
TSC is the premier one-stop-shop for heart of the house hospitality management in the hotel, casino and vacation ownership industries, leveraging its expertise in back-of-the-house operations and its track record of reducing costs while improving quality. TSC today serves nearly 375 properties in 38 states and the Caribbean with 4,000 employees who provide turnkey housekeeping, night cleaning, stewarding, window and chandelier cleaning, floor care, kitchen cleaning, security, landscaping, laundry management and parking services. "TSC is an ideal addition to our US portfolio," said Matt Shafer of Vision Capital. "We made the investment because we believe in the TSC leadership team and in the company's position as the premier service provider for the luxury hospitality industry. TSC's potential for growth in its space is unrivaled, and we look forward to supporting this superb team of seasoned industry professionals as they continue to expand the business." Added Neal Pomroy, Chairman of TSC's Board and a partner at DLJ,"We welcome Vision's involvement with TSC. They are wonderful partners and we are confident that the combination of Vision and DLJ will allow TSC to accelerate its already impressive growth."
Since its acquisition by DLJ Merchant Banking Partners in 2008, TSC has fortified its management team to include experienced hospitality industry executives; expanded its service portfolio organically and via key acquisitions; developed a proactive sales and marketing effort to fast-track growth; and added Vision Capital to its roster of equity investors.
With the addition of these leaders, TSC added turnkey housekeeping to its service portfolio and closed out 2010 having cleaned over 2 million hotel rooms. The team followed the expansion into housekeeping with the acquisition of JRS International Inc. last fall. JRS provides window and chandelier cleaning services to upscale hotels and resorts throughout the United States and the Caribbean. Joel Shumaker, who founded JRS International in 1989, joined TSC as General Manager of its new JRS International subsidiary following the acquisition.
Wilson calls TSC's business outlook "extremely positive," for both the near and long-term. "Our approach to heart of the house hospitality management is more relevant than ever in the wake of the recession, which caused operators to cut overhead costs sharply. Even though general managers may have cut back as far as they could, TSC offers them a way to improve profit margins while enhancing cleanliness."
While reducing costs may provide the impetus for heart of the house hospitality management, TSC equally values performance. The company guarantees to maintain or improve its clients' quality assurance scores, as measured either by franchise brand inspectors or independent rating agencies. TSC has successfully fulfilled that pledge throughout its 24 years in business.
TSC's ability to deliver consistent quality is due, in part, to extensive training, according to Rosenow, who has introduced world-class web-based educational modules to support TSC's orientation and on-the-job training programs. Last year TSC hosted its second annual two-day management summit, where managers were encouraged to "think big, act small, nail the basics, and deliver personalized service," he said.
Wilson credits his executive team's 200 combined years of hospitality experience as the key to understanding and supporting individual properties. "We all have walked the walk, and we speak the GM's language," he said. "We understand the challenges that face the front-line property staff. Our clients know we're available whenever they need us."
The Service Companies is the leading heart of the house provider of hospitality management services for the hotel, casino and vacation ownership industries in the United States.. TSC operates in 40 states, Puerto Rico, the Caribbean and Mexico, providing services ranging from turnkey housekeeping and stewarding services to cleaning of public areas, kitchens, windows and chandeliers. Led by an executive team with more than 200 years of combined experience at AAA Four Diamond-rated hotels and casinos, TSC has an impressive track record, serving a variety of exclusive clients including The Ritz-Carlton, Four Seasons, Caesars, MGM, Loews, Hyatt, Bluegreen and Wyndham Vacation Resorts. TSC's model delivers both consistently high levels of service quality and improved performance at the bottom line. For more information on The Service Companies, please call (800) 385-8800 or visit www.theservicecompanies.com.
DLJ Merchant Banking Partners ("DLJMB") is one of the most active and successful private equity investors in North America and Europe, with a 25-year history of leading leveraged buyout and related transactions in the middle-market. In order to enhance returns and minimize risk, DLJMB seeks to create a portfolio that is diversified by transaction type, industry and geography. DLJMB focuses primarily on control equity investments in middle-market companies that have strong, established market positions and excellent growth prospects, across a broad range of sectors. In addition to lead equity investments, DLJMB will selectively complete both minority equity and structured equity investments to take advantage of unique market opportunities. DLJMB draws upon a seasoned team located in New York, Los Angeles and London, which includes a dedicated in-house portfolio strategy operations team that serves to enhance DLJMB's rigorous due diligence process, and develops and drives strategic plans that are designed to accelerate and maximize value creation strategies for its portfolio companies. Through its highly disciplined, credit-oriented and value-add investment approach, DLJMB provides a unique and differentiated platform for private equity investing.
Vision Capital is an international investor with an innovative approach to private equity and a broad, flexible investment mandate. Vision Capital has operations in Europe and the Americas and has a multi-sector approach with specialist expertise in financial services, industrials, consumer and retail and business services. Vision Capital's investment in TSC is one of a series of transactions completed since the firm opened its US office in 2010. Other recent deals in the Americas include an investment partnership with New Evolution Ventures focused on the global fitness, health and wellness industry and the sale of Terphane, a Brazil-based manufacturer of specialty materials for flexible packaging applications, to Tredegar Corporation (NYSE:TG). For further information, please visit www.visioncapital.com.