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Key Moments

  • KKR & Co has agreed to acquire A1 Garage Door Service in a transaction valued at around $2 billion, according to sources familiar with the matter.
  • The acquisition follows a broader wave of home services M&A, including Oak Hill Capital’s $800 million-plus purchase of Guild Garage Group this year.
  • A1 Garage Door Service, founded in 2007 and backed by Cortec Group since 2022, operates in around 20 U.S. states.

Transaction Overview

By Abigail Summerville

NEW YORK, Sept 2 (Reuters) – KKR & Co has reached an agreement to acquire A1 Garage Door Service, a company focused on residential garage door repair and replacement, in a deal valued at approximately $2 billion, according to people familiar with the situation.

The planned acquisition positions KKR to deepen its presence in the residential services segment, an area that has seen heightened private equity interest due to what investors view as predictable cash generation and attractive valuations in fragmented markets.

Home Services M&A Momentum

The A1 Garage Door Service purchase is part of a broader consolidation trend in home services. Earlier this year, Oak Hill Capital completed an $800 million-plus acquisition of Guild Garage Group, underscoring continued appetite for scale in residential repair and maintenance platforms.

Private equity firms have been active buyers of residential services companies, focusing on businesses that operate in numerous local markets and can benefit from operational efficiencies and brand roll-ups.

A1 Garage Door Service Profile

Based in Phoenix, Arizona, A1 Garage Door Service was established in 2007 by CEO Tommy Mello. Under his leadership, the company has expanded into one of the largest residential garage door service providers in the United States, with operations in around 20 states.

In 2022, A1 secured growth capital from private equity firm Cortec Group, which has supported the company’s expansion. Representatives for KKR and Cortec declined to comment on the latest transaction, and A1 Garage Door Service could not be reached for comment.

CompanySector FocusKey Detail
A1 Garage Door ServiceResidential garage door repair and replacementOperating in around 20 states; founded in 2007
Guild Garage GroupGarage-related servicesAcquired by Oak Hill Capital for $800 million-plus this year

KKR’s Existing Residential Services Footprint

KKR is not new to the residential services space. The firm already holds investments in Neighborly and Groundworks, two platforms that broaden its exposure across home repair and maintenance categories.

In 2021, KKR acquired Neighborly, describing it at the time as “the world’s largest provider and franchiser of home service brands including plumbing, pest control, restoration, electrical, cleaning, HVAC and home inspection.” In 2023, KKR made a significant investment in Groundworks, a company that focuses on residential foundation and water management services. Cortec is also an investor in Groundworks.

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