KKR Targets Home Services Expansion With $2 Billion A1 Garage Buy

Founded in 2007 by CEO Tommy Mello, the Phoenix-based company has expanded its footprint across 20 states. The firm previously secured growth capital from Cortec Group in 2022, a move that positioned it for this significant exit. Neither KKR nor Cortec representatives have commented on the transaction, and A1 Garage has not responded to requests for details.

This acquisition follows a broader industry trend, exemplified by Oak Hill Capital’s recent $800 million purchase of Guild Garage Group. For KKR, the move builds on an existing portfolio in the home services sector. The firm previously acquired Neighborly, a massive franchiser encompassing plumbing, HVAC, and electrical services, and took a stake in foundation repair provider Groundworks in 2023. By targeting these specialized service providers, KKR continues to secure a dominant position in the recurring-revenue landscape of home ownership.