July 13, 2022
Bessemer Investors LLC (“Bessemer”), a New York-based investment firm, announced today that it has made a strategic investment in RotoCo, LLC (“RotoCo” or the “Company”) headquartered in North San Diego County, CA. RotoCo is the largest franchisee of the Roto-Rooter Plumbing and Drain Service in the US and Canada, with branches and franchises in California from Sacramento to San Diego. Bessemer is partnering with RotoCo’s existing management team, including Founder and CEO, Jim Holcomb, and President, Brian McCann, who will both continue to lead the Company in their current roles. Financial terms of the transaction were not disclosed.
For decades, Roto-Rooter and its franchisees have been some of the nation’s largest and most trusted providers of plumbing and drain cleaning services for both residential and commercial customers, and currently provide service coverage to 90% of the US population and 40% of Canada. Bessemer invested in RotoCo in support of the Company’s continued growth, both organically and through strategic acquisitions.
Mr. Holcomb said, “We are delighted to join with Bessemer in the expansion of our business. We have significant opportunity to continue growing the business as we have successfully done since its founding and are excited to work alongside Bessemer through our next phase of business growth.”
“Our skilled service technicians provide unmatched service to our customers and the Roto-Rooter name is synonymous with quality,” said Mr. McCann. “Bessemer’s support will help expand our operational capabilities and provide additional resources and opportunities to our team internally.”
“We are excited to be partners with Bessemer whose long-term, flexible capital base will allow us to accelerate our expansion while focusing on long-term value creation,” said Martin Szumski, Chief Financial Officer at RotoCo.
Bohdan Tyshynsky, Vice President at Bessemer, said, “RotoCo is a proven leader in residential plumbing services with an excellent operational team and a systematic model and approach to providing its services. RotoCo has a long and successful history of growing both organically and through acquisitions, and we look forward to supporting Jim, Brian and the management team as they continue to build a great platform. Plumbing and drain cleaning services have been resilient during changing economic cycles, and we anticipate growth as homeowners increasingly outsource their home services and from the rising plumbing maintenance requirements of the nation’s aging housing stock.”
The Bessemer team included David Barr, Andrew Mendelsohn, Bohdan Tyshynsky, and Joe Middleman.
BofA Securities, Inc. served as financial advisor to RotoCo, while DLA Piper and SkarlatosZonarich served as legal counsel. Cowen served as financial advisor to Bessemer Investors, while Akin Gump Strauss Hauer & Feld LLP served as legal counsel. Audax Private Debt and Treeline Capital Partners are providing debt financing for the transaction.
Founded in 1974 by Jim Holcomb, RotoCo is a family-owned business and the largest franchise partner of Roto-Rooter Plumbing and Drain Service. RotoCo operates under the Roto-Rooter brand in San Diego County, Los Angeles County, The Inland Empire, The County of Santa Barbara, Monterey County, California’s entire Central Valley region, and north beyond Sacramento County. RotoCo continually invests in its people and technology to offer best-in-class services to both commercial and residential property owners, and has grown into the leading plumbing, drain and flood restoration company in California. For more information, please visit http://www.RotoRooterca.com.
Bessemer Investors is a New York-based investment firm focused on partnering with middle market businesses to support growth and enhance value creation. Bessemer differentiates itself by combining a long-term, flexible capital base with a team of experienced private equity professionals. This approach offers unique solutions to Bessemer’s partners and the flexibility to maximize long-term value.