Environmental Industries acquires landscape construction operations

Environmental Industries, Inc. (EII), a closely held landscape company announced that they have entered into a definitive agreement with ServiceMaster Corporation (NYSE: SVM) for EII to acquire certain landscape construction operations of TruGreen LandCare L.L.C., its wholly owned landscape subsidiary, in most areas of the United States.  TruGreen’s construction operations had sales of approximately $168 million in 2000.  TruGreen’s lawn care and landscape maintenance divisions will remain with ServiceMaster and are not included in this transaction.  Terms were not disclosed.


The acquired operations will become a part of Valley Crest, Environmental Industries’ landscape construction company. The acquisition gives Valley Crest extended penetration into the landscape construction, site engineering and design-build segments of the landscape services market and complements the company’s leading position in the multi-billion dollar landscape industry.  The venture also creates a strong base of new customers for Valley Crest in Washington-Baltimore, Boston, Chicago, Minneapolis, and Austin.


In making the announcement, President and COO of Environmental Industries, Richard A. Sperber said, “We are pleased to join with these operations and the teams that run them.  These are outstanding organizations with a good reputation and include some of the finest landscape people we know.”


“We’ve been searching for the right mix of acquisition opportunities to complement the great market position we enjoy,” he added. “This deal makes sense strategically. It strengthens our core services and our ability to offer full-service landscape and site development services for customers across the country,” he continued.


The new market operations will report to Valley Crest President and Chief Operating Officer, Thomas C. Donnelly.  “This move develops access to new growth opportunities and creates an industry leader committed to world-class practices and operational excellence,” said Donnelly.  “These operations have their heritage in some of the finest landscape companies and people in their areas and we are thrilled to have them as part of our company.” 


This is EII’s fourth acquisition in the last 24 months and follows the company’s most recent acquisition of North Haven Gardens in Dallas in December 2000.  With this venture, Environmental Industries will increase the number of employees nationwide to more than 6,500, and will increase the company’s annual proforma revenue to nearly $600 million.


Founded as Valley Crest Landscape Nurseries Inc. in North Hollywood, Calif., in 1949, Environmental Industries (EII) was formed in 1969 as a holding company for all of its operating divisions.  Today, Calabasas-based EII employs 6,100 people nationwide. Consisting of three primary entities—nursery, construction, and maintenance—its brands include Environmental Care, a landscape maintenance, irrigation, water management and professional tree care services company; Environmental Golf, a provider of golf course maintenance services across the U.S.; Valley Crest, a site development, pre-construction, landscape and irrigation services company; Valley Crest Tree Company, a nursery grower and mover of containerized specimen trees; and U.S. Lawns, a franchise landscape maintenance company.


Environmental Industries ranks in the top 40 of privately held firms in Los Angeles. It is listed among the top 80 contractors in the nation, according to Engineering News-Record—and the only landscape company listed within the publication’s Top 400 contractors.  The company was recently ranked in the top 150 as a Design-Build Master Builder by the Design-Build Institute of America.

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