Orangewood co-founder and managing partner Alan Goldfarb
Private equity firm Orangewood Partners’ investments always require three things: great people, strong cash flow and long-term tailwinds, founder Alan Goldfarb said.
The firm’s investment in Servpro West Coast Disaster Response Team “is no different,” the managing partner said. Goldfarb did not disclose financial terms of the deal, but Orangewood aims to further expand West Coast DRT’s portfolio.
“We’re really excited to be in a partnership with them,” he said.
Servpro is a commercial and residential cleaning and restoration franchise. PE firm Blackstone bought a majority stake in the franchise in 2019. In 2022, the company did $3.66 billion in sales across 2,136 units, earning it the No. 32 spot on the Franchise Times Top 400 list. The initial investment range for a ServPro unit is $236,270 to $296,775.
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Founded in 2015, Orangewood’s other investments include Pacific Bells, a Taco Bell franchisee; OCS, a Popeyes franchisee; and M7B, a 7 Brews franchisee.
“We have a real thesis-driven approach around the franchise market more broadly,” Goldfarb said.
The West Coast franchisee—based in Encino, California—is ranked in the top 2 percent of Servpro owners. Co-founders Alan Reed, Darryn Barber and Manny Corral will continue leading the company and maintain a stake in the business. The team was named franchisee of the year at Servpro in 2021.
Orangewood is keeping the franchisee’s employees and isn’t looking to change much going forward. “We are truly partnering with them and just looking to expand upon the great work they’ve been doing,” Goldfarb said.
That said, Orangewood will invest in further building up the Servpro West Coast team and improving technology to help with customer service.