(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm which focuses on investing in and growing entrepreneur and family-owned middle-market business-to-consumer and business-to-business products and services companies serving consumer, healthcare, and other attractive end markets, announced that on December 22, 2022, an affiliated investment group led by Cortec Group Fund VII, L.P. (“Cortec VII”), in partnership with Founder and CEO Tommy Mello and management, completed the growth recapitalization of A1 Garage Door Service Holdings, Inc. and its affiliates (“A1” or the “Company”). Terms of the transaction were not disclosed.
Headquartered in Phoenix, Arizona and serving 25 markets across the U.S., A1 is a market leader in the direct-to-consumer residential repair and replacement garage door services industry. The Company has grown rapidly, both organically and through acquisitions, since its founding in 2007. Today, A1 is one of the largest and most reputable residential garage door service providers in the country.
“A1 is the premier national platform in the residential garage services industry. Tommy and his team have established the Company’s leading reputation through their commitment to providing consistently excellent customer service, and a highly effective and repeatable go-to-market strategy. We are excited to partner with Tommy to help him continue to build on the Company’s track record of growth and success,” said Doug Kruep, a Partner at Cortec. Will Keesler, a Cortec Managing Director, added, “Leveraging our significant experience in the residential services space, including our investments in Window Nation, Groundworks, Goettl and Four Seasons, we quickly recognized A1’s growth potential and position as the acquiror of choice for independent garage door operators looking to grow their businesses. We are excited to continue scaling the business, both organically and through acquisitions.”
Mr. Mello, who will continue to lead the business and will maintain a significant ownership stake alongside Cortec VII, commented: “From my first meeting with the Cortec team, I knew they would be the best partner to help us take A1 to the next level. Their expertise and track record in residential services is unmatched, and their enthusiasm for our business and its potential was apparent from day one. We look forward to partnering with Cortec and leveraging their experience and resources to grow our company faster than we could have on our own.”
The A1 investment represents the eighth and final platform in Cortec VII, a $2.1 billion fund which closed in November 2019. Paul Hastings LLP served as legal advisor to Cortec. Senior debt to support the investment was provided by Audax Private Debt, PennantPark Investment Advisers, Invesco Private Debt and Cliffwater Corporate Lending Fund. Cowen served as financial advisor and Foley & Lardner LLP served as legal advisor to A1.
About A1
A1 is a leading provider of residential repair and replacement garage door services across the U.S. Founded in 2007, A1 has established a reputation for providing the highest quality customer service available in its 25 markets. More information about A1 can be found at www.a1garage.com.
About Cortec
Founded in 1984, Cortec invests in leading, middle-market specialty consumer, healthcare, distribution, and specialty services and products businesses in partnership with owners and management teams who want to work with Cortec to drive growth and improve business fundamentals. More information about Cortec can be found at www.cortecgroup.com.
