PNC Riverarch Capital announced today the acquisition of a controlling interest in The Cleaning Authority, LLC (TCA), a leading franchisor of residential cleaning businesses with 183 franchised service territories in the United States and Canada.
Senior financing for the transaction was provided by NXT Capital and BMO Capital Markets. Audax Mezzanine provided the subordinated debt. KPMG Corporate Finance LLC represented TCA in this transaction and acted as its exclusive financial advisor.
Founded in 1977, TCA is a green cleaning company based in Columbia, Maryland. TCA has developed a proven franchise system which affords franchises territorial exclusivity, turn-key marketing and operational support, and access to proprietary business management software. The company’s franchises provide regular cleaning services to over 80,000 customers, with more than 1.7 million cleanings performed in 2013.
The transaction for PNC Riverarch Capital was led by Michael Rost, managing director; Andrew Wiechkoske, director; and Brian Blake, associate. PNC Riverarch Capital will be represented on the Board of Directors by Rost and Wiechkoske.
“TCA’s strong franchise model has resulted in consistent growth for the company and its highly successful franchises,” said Rost. “We believe the company’s strong management team, proven marketing and operational support systems, and strong base of highly experienced franchises ideally positions TCA to take advantage of continued growth in the residential cleaning market.”
PPM America Capital Partners, Audax Mezzanine and TCA management have co-invested alongside PNC Riverarch Capital. Additionally, TCA co-founder Steve Robinson reinvested into the transaction and will remain on the TCA Board of Directors.
PNC Riverarch Capital is a middle-market private equity firm which invests in privately held companies headquartered in North America. The firm seeks well-positioned companies where it can invest $10 million to $50 million of capital in support of recapitalizations, leveraged and management buyouts, corporate divestitures and growth financings. PNC Riverarch Capital also invests across a variety of other industry sectors, including outsourced services, specialized manufacturing, and value-added distribution. Riverarch Capital is a division of PNC Capital Finance, LLC, a wholly-owned indirect subsidiary of The PNC Financial Services Group, Inc. Since 1982, PNC has invested over $1.0 billion of equity capital in more than 100 companies.