HomeVestors of America Acquired by Franchise Brands, LLC
DALLAS - (June 10, 2008) - HomeVestors® of America, Inc., the "We Buy Ugly Houses"® company, announced today that Milford, CT-based Franchise Brands, LLC, has acquired majority ownership of the company. Terms of the purchase were not disclosed.
Famous for its "We Buy Ugly Houses" billboards, HomeVestors is America's #1 Home Buyer. Founded in 1989, HomeVestors sold its first franchise in 1996 to set a new benchmark for professional residential real estate investing. The company has rapidly grown to national prominence as the only franchise that specializes in buying, rehabbing and selling single-family homes to reinvigorate existing communities across the country. HomeVestors' expanding network of 230-plus franchised offices in 35 states and more than 100 major markets has purchased more than 35,000 houses to date. The company's franchisees sell most of the houses to other investors and first-time homebuyers.
"We're delighted that Franchise Brands recognizes the potential of our franchise network and decided to acquire a majority interest," said John P. Hayes, Ph.D., president and CEO of HomeVestors. "The past 12 months have proven to be challenging for most real estate-related businesses, including HomeVestors, but when the real estate market completes its correction and begins to expand again, HomeVestors will be perfectly situated to continue expanding, too. Our company, and especially our franchisees, will gain from the support of Franchise Brands."
In 2007, Franchise Brands, LLC, which owns several other franchise companies, invested several million dollars in HomeVestors' operations. Franchise Brands continued to watch the company's development and recently decided to commit additional financial resources to help HomeVestors continue its franchise expansion and to further develop the HomeVestors business model.
Hayes said that no changes are expected in the management team of HomeVestors of America, Inc. He has served as President since late 2004 and CEO and chairman since January 2005 when the company's founder, Ken D'Angelo, died after a short illness.
About HomeVestors® of America, Inc.
Founded in 1989 and franchising since 1996, Dallas-based HomeVestorsR of America, Inc., has more than 230 franchises throughout the United States. The first franchise company of its kind, HomeVestors® trains and supports franchisees who specialize in buying homes in need of repair. Most commonly known as the "We Buy Ugly Houses"® franchise, HomeVestors® strives to make a positive impact in each community.
About Franchise Brands, LLCFranchise Brands, LLC was created in 2005 with the support and guidance of the founders of SUBWAY® restaurants. Franchise Brands provides investment capital to support growth and development of promising and proven concepts. The company considers investments across a number of industries, including food and beverage, retail, consumer products and services, as well as business to business services.
