BrightView adds new CEO, gets $500M investment
The board of directors for BrightView appoints Dale A. Asplund as president and chief executive officer, effective Oct. 1. In conjunction with his appointment as CEO, Asplund will also join the BrightView board as a director as of that date.
In addition, BrightView said an affiliate of One Rock Capital Partners, a private equity firm, made a $500 million strategic investment in the company in the form of convertible preferred stock.
Asplund succeeds Jim Abrahamson, interim president and CEO. Abrahamson, who has served as a BrightView independent director since 2015, will remain as a member of the board.
Asplund brings 25 years of extensive operational, service provider and publicly traded company expertise to BrightView from United Rentals. Most recently, as executive vice president and chief operating officer, a position he was appointed to in 2019, Asplund served on the executive leadership team with company-wide responsibility for operations and employee safety. Asplund, who joined United Rentals in 1998, held strategic leadership roles encompassing business services, shared services, supply chain, fleet management and information technology.
“Dale is an outstanding leader whose proven operational excellence and exceptional strategic capabilities make him an ideal choice for our next CEO,” said Paul E. Raether, chairman of the board of directors. “As BrightView continues its transformational journey, the board looks forward to working with Dale to deliver long-term growth and value for shareholders and is grateful to Jim for leading the company.”
One Rock investment
As part of its strategic initiatives, BrightView received a $500 million investment from One Rock in the form of newly issued shares of convertible preferred stock. BrightView said it will use 90 percent of the proceeds from the investment to pay down debt, helping to significantly de-lever the company’s balance sheet to 3.1x net debt to LTM Adjusted EBITDA. The company said it expects the remaining funds from the new investment — coupled with increased free cash flow due to lower interest expense — with the flexibility to pursue acquisitions of complementary landscape businesses and other initiatives.
“We believe this investment from One Rock is a strong vote of confidence in BrightView’s strategy and continued efforts to increase growth and profitability,” said Raether. “We look forward to partnering with One Rock and leveraging their operational expertise, including extensive experience in the landscaping industry, as we continue to drive BrightView’s future success.”
Following receipt of Hart-Scott-Rodino approval and certain other requirements, the preferred stock will be convertible into shares of BrightView common stock at a conversion price of $9.44 per share and will vote together with the company’s common stock on all matters brought to shareholders on an as-converted basis. The preferred stock has a 7 percent annual dividend, compounded quarterly, which will be payable in cash or in kind at BrightView’s option.
In connection with this transaction, One Rock Operating Partner, Kurtis Barker and One Rock Partner, Joshua Goldman, have been appointed as new directors to BrightView’s board. Upon their appointment and that of Asplund, the board will be comprised of 10 directors.
KKR BrightView Aggregator L.P., the current majority stockholder of BrightView, approved the One Rock investment transaction and, in connection with it, has agreed to waive certain of its contractual rights, including the right to appoint more than two members of the board and to approve certain significant BrightView actions. BrightView will be filing with the SEC and mailing an information statement to its stockholders with further information regarding the transaction.
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