Asplund also Named to Board of Directors
One Rock Operating Partner Kurtis Barker and
One Rock Partner Joshua Goldman Appointed to Board
Investment Proceeds to Reduce Leverage and
Accelerate Growth
BrightView Holdings, Inc. (“BrightView” or the “Company”) (NYSE:
BV), the leading commercial landscaping services company in the
United States, today announced that its Board of Directors has
appointed Dale A. Asplund, 55, as President and Chief Executive
Officer, effective October 1, 2023. In conjunction with his
appointment as CEO, Asplund will also join the BrightView board as
a director as of that date. In addition, BrightView today announced
that an affiliate of One Rock Capital Partners, LLC (“One Rock”), a
value-oriented, operationally focused private equity firm, has made
a $500 million strategic investment in the Company in the form of
convertible preferred stock.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230827430329/en/
Dale A. Asplund (Photo: Business
Wire)
CEO Appointment
A respected and successful business executive, Asplund’s
appointment follows a thorough search process, conducted by the
Board over the last number of months in consultation with a leading
search firm, with the mandate to appoint a next-generation leader
who is capable of driving transformative growth at BrightView.
Asplund succeeds Interim President and CEO Jim Abrahamson.
Abrahamson, who has served as a BrightView independent director
since 2015, will remain as a member of the Board.
Asplund brings 25 years of extensive operational, service
provider, and publicly traded company expertise to BrightView from
United Rentals, Inc., the world’s largest equipment rental company.
Most recently, as Executive Vice President and Chief Operating
Officer, a position he was appointed to in 2019, Asplund served on
the executive leadership team with company-wide responsibility for
operations and employee safety. Asplund, who joined United Rentals
in 1998, has held strategic leadership roles encompassing business
services, shared services, supply chain, fleet management, and
information technology. Earlier in his career, Asplund worked for
United Waste Systems, Inc.
“We are excited to welcome Dale to the BrightView team. Dale is
an outstanding leader whose proven operational excellence and
exceptional strategic capabilities make him an ideal choice for our
next CEO,” said Paul E. Raether, Chairman of the Board of
Directors. “As BrightView continues its transformational journey,
the Board looks forward to working with Dale to deliver long-term
growth and value for shareholders and is grateful to Jim for
leading the Company through this transition period and his
continued involvement in BrightView.”
“I am excited to lead this great company and talented team into
its next phase of growth and performance,” said Asplund.
“BrightView has firmly established itself as the industry leader in
commercial landscaping. I look forward to collaborating with the
Board, senior management, and dedicated team members to build upon
their success. Underscoring my confidence in the Company’s future,
in the coming weeks, I plan to make a personal investment of
approximately $5 million in BrightView shares.”
Today’s announcement follows the Company’s recent fiscal third
quarter earnings report, highlighted by solid revenue growth,
continued margin progression, and significant cash flow
improvement. Project Accelerate, the Company’s cost containment
initiative, has been materially expanded and is transitioning into
the implementation phase – now identified as Project Liberty, with
the intent of driving continued growth in revenue, profitability,
and margin expansion.
One Rock Investment
As part of its strategic initiatives to accelerate operational
excellence, grow the business, and strengthen its balance sheet,
BrightView has received an investment from One Rock in the form of
$500 million newly-issued shares of convertible preferred stock.
BrightView will use 90% of the proceeds from the investment to pay
down debt, helping to significantly de-lever the Company’s balance
sheet to 3.1x net debt to LTM Adjusted EBITDA and position it for
transformative growth under Asplund’s new leadership. Remaining
funds from the new investment, coupled with increased free cash
flow due to lower interest expense, are expected to provide
BrightView with the flexibility to pursue acquisitions of
complementary landscape businesses and other accretive initiatives.
BrightView’s existing shareholders are not selling any shares in
connection with the transaction.
“We believe this investment from One Rock is a strong vote of
confidence in BrightView’s strategy and continued efforts to
increase growth and profitability,” said Raether. “We look forward
to partnering with One Rock and leveraging their operational
expertise, including extensive experience in the landscaping
industry, as we continue to drive BrightView’s future success.”
“One Rock’s investment approach is centered on our capacity to
deliver a broad range of operational and strategic resources to
portfolio companies that are anchored by the expertise of One
Rock’s team of Operating Partners,” said Joshua Goldman, Partner at
One Rock. “We expect that our prior experience providing strategic
and hands-on operational improvements to the businesses we’ve owned
in the business and environmental services sectors will be additive
to BrightView’s and Dale’s vision to generate returns for
shareholders.”
Following receipt of HSR approval and certain other
requirements, the preferred stock will be convertible into shares
of BrightView common stock at a conversion price of $9.44 per share
and will vote together with the Company’s common stock on all
matters brought to shareholders on an as-converted basis. The
preferred stock has a 7% annual dividend, compounded quarterly,
which will be payable in cash or in kind at BrightView’s
option.
In connection with this transaction, One Rock Operating Partner,
Kurtis Barker, and One Rock Partner, Joshua Goldman, have been
appointed as new directors to BrightView’s board. Upon their
appointment and that of Asplund, the Board will be comprised of 10
directors.
KKR BrightView Aggregator L.P., the current majority stockholder
of BrightView, has approved the One Rock investment transaction
and, in connection with it, has agreed to waive certain of its
contractual rights, including the right to appoint more than two
members of the Board and to approve certain significant BrightView
actions. BrightView will be filing with the SEC and mailing an
information statement to its stockholders with further information
regarding the transaction.
Houlihan Lokey Capital, Inc. served as financial advisor to
BrightView’s Board of Directors and Simpson Thacher & Bartlett
LLP served as legal advisor. Mizuho Securities USA LLC served as
financial advisor and Latham & Watkins LLP served as legal
advisor to One Rock on the transaction.
About BrightView
BrightView (NYSE: BV), the nation’s largest commercial
landscaper, proudly designs, creates, and maintains the best
landscapes on Earth and provides the most efficient and
comprehensive snow and ice removal services. With a dependable
service commitment, BrightView brings brilliant landscapes to life
at premier properties across the United States, including business
parks and corporate offices, homeowners' associations, healthcare
facilities, educational institutions, retail centers, resorts and
theme parks, municipalities, golf courses, and sports venues.
BrightView also serves as the Official Field Consultant to Major
League Baseball. Through industry-leading best practices and
sustainable solutions, BrightView is invested in taking care of our
team members, engaging our clients, inspiring our communities, and
preserving our planet. Visit www.BrightView.com and connect with us
on Twitter, Facebook, and LinkedIn.
About One Rock
One Rock makes investments in companies with potential for
growth and operational improvement using a rigorous approach that
utilizes highly experienced Operating Partners to identify,
acquire, and enhance businesses in select industries. The
involvement of these Operating Partners affords One Rock the
ability to conduct due diligence and consummate acquisitions and
investments in all types of situations, regardless of complexity.
One Rock strives to work collaboratively with company management
and its Operating Partners, including on a comprehensive business
plan focused on growing the enterprise and its profitability to
enhance long-term value. For more information, visit
www.onerockcapital.com.
Forward Looking
Statements
This press release includes certain disclosures which contain
“forward-looking statements.” Forward-looking statements are based
on BrightView’s current expectations and assumptions. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks, and changes in circumstances that
may differ materially from those contemplated by the
forward-looking statements, which are neither statements of
historical fact nor guarantees or assurances of future performance.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements can be
found under the caption “Risk Factors” in our most recent annual
report on Form 10-K filed with the SEC, as such risk factors may be
updated from time to time in our periodic filings with the SEC,
which are accessible on the SEC’s website on www.sec.gov. Any
forward-looking statement in this release speaks only as of the
date of this release. BrightView undertakes no obligation to
publicly update or review any forward-looking statement, whether as
a result of new information, future developments or otherwise,
except as may be required by any applicable securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230827430329/en/
BrightView: Investor Relations
IR@BrightView.com
News Media David Freireich, Vice President of
Communications & Public Affairs (484) 567-7244
David.Freireich@BrightView.com
One Rock: Julia Cohen Pro-onerock@prosek.com
BrightView (NYSE:BV)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
BrightView (NYSE:BV)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024