How did Empower fund the acquisition of Superior Fence & Rail by Canopy Lawn Care?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
"Superior") for the purpose of adding a fencing service brand to its portfolio.
After net working capital adjustments, the purchase price of Superior was approximately $69,256,000 which includes a $5,000,000 earnout provision subject to Superior maintaining certain revenue and employee retention thresholds. The acquisition was funded by capital contributions from Empower consisting of units of ownership interest in Bobcat Holdings valued at approximately $25,000,000, debt financing of approximately, $31,000,000 obtained by Empower, and cash.
The Company recorded tangible and intangible assets acquired and liabilities assumed in the acquisition under the purchase method of accounting. The consideration was allocated to assets and liabilities based on their fair values at the acquisition date. The $5,000,000 earnout provision liability was
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the company acquired the assets of Superior Fence & Rail on December 15, 2021. The purchase price for Superior Fence & Rail, after net working capital adjustments, was approximately $69,256,000, which included a $5,000,000 earnout provision. This earnout was contingent upon Superior Fence & Rail maintaining certain revenue and employee retention thresholds. The $5,000,000 earnout provision liability was allocated to Empower and paid by Empower in 2023 based on actual amounts earned.
The acquisition of Superior Fence & Rail was funded through a combination of sources. Empower contributed units of ownership interest in Bobcat Holdings valued at approximately $25,000,000. Additionally, Empower obtained debt financing of approximately $31,000,000 to support the acquisition. The remaining portion of the purchase price was covered by cash.
For a prospective Canopy Lawn Care franchisee, this information highlights the financial activities of Canopy Lawn Care's parent company, Empower, and its approach to expanding its portfolio of brands. While the acquisition of Superior Fence & Rail does not directly impact the operations of a Canopy Lawn Care franchise, it provides insight into Empower's growth strategy and financial capabilities. This may be relevant to franchisees as it demonstrates Empower's commitment to expanding its presence in the home services market through strategic acquisitions.