LENA, Ill.—The home improvement industry’s mergers-and-acquisition streak continues unabated. Fast growing TSR Concrete Coatings LLC, No. 106 on the Qualified Remodeler TOP 500 list recently sold a majority of its shares to a private equity firm based in California, Bertram Capital of Foster City, California. The investment company is the most recent addition to a growing list of private equity firms with investments in the retail home improvement industry.
Though TSR is not among super-large firms to be acquired recently, it is one of the most innovative in terms of marketing and lead-generation. The company’s multi-year growth has been 100 percent fueled by paid social media, of which more than 90 percent is conducted on Facebook. The company uses very small amounts of Instagram and You Tube.
Staff at TSR interact directly on the Facebook platform with prospects who click to inquire. Many appointments and jobs are set using the messaging tools on social media platforms, TSR founder and CEO Jeff Gear said. In 2021, the company generated $26 million in business for its three brands, TSR, Icon and Legacy, while overall marketing costs at the company remained significantly lower than industry standards at approximately 7 percent of revenue, Gear added.
Gear and his marketing leader will be speaking about their approach to generating leads at the upcoming F.A.S.T. Remodeler Live event May 10 – 11 in Baltimore.
The focus on technology appears to have been a key factor in the deal. In announcing its investment in TSR on March 29, Bertram said it sees synergies with their in-house technology advisory, Bertram Labs.
“TSR is one of the fastest growing brands in the home improvement industry and has developed market leadership positions across their core geographies. The company’s success is a result of their innovative customer acquisition strategy, professional installation process, and strong service-oriented business model” said Tom Beerle, partner at Bertram Capital. “We are excited to partner with Jeff Gear and the entire TSR team. Jeff has built an exceptional platform where we see tremendous opportunities for Bertram Labs, our in-house technology team, to augment TSR’s digital capabilities and continue driving increased awareness for the brand.”
Gear said he retains a significant minority stake in the company and that he plans to stay with the company as it looks to grow dynamically to an anticipated level many multiples of its current size.
“The TSR Concrete Coatings team is excited to partner with Bertram Capital to pursue the next phase of our growth,” said Gear. “During the sale process, Bertram demonstrated a clear understanding of our brand, service offering, and adoption trend for concrete coatings. We look forward to collaborating with Bertram and achieving our collective goals for the company’s future.”
Investment banking firm Angle Advisors, which has been involved in several home improvement transactions in recent years, assisted in the TSR transaction. TSR represents the eighth investment in Bertram’s fourth fund. Terms of the transaction were not disclosed. QR
About Bertram CapitalA description of Bertram Capital taken from its press release on March 29, 2022
Bertram Capital is a private equity firm targeting investments in lower middle market companies. Since its inception in 2006, the firm has raised over $2.2B of capital commitments. In addition to supplying strategic growth capital, Bertram Capital leverages proprietary processes and services, Bertram High-5sm and Bertram Labs, to empower its portfolio companies to unlock their full business potential. The Bertram High-5sm is an operationally focused value creation strategy, which includes management augmentation, operational initiative implementation, complementary business acquisition, sales and marketing improvements, and leverages technology and IP. The cornerstone of this strategy is Bertram Labs, its in-house technology team, which drives growth and value through digital marketing, e-commerce, big data and analytics, application development, and internal and external platform optimization. Visit www.bcap.com for more information.