Franchise Brands Buys Homevestors

(Tuesday, June 10, 2008) - Franchise Brands LLC has bought majority ownership of HomeVestors of America Inc., the company behind the "We Buy Ugly Houses" billboards.

Terms of the deal were not disclosed.

Founded in 1989, Dallas-based HomeVestors sold its first franchise in 1996 and has grown to a national franchise that specializes in buying homes that need repair. HomeVestors' network includes more than 230 franchised offices in 35 states. The company said its franchisees sell most of the houses to other investors and first-time home buyers.

"We're delighted that Franchise Brands recognizes the potential of our franchise network and decided to acquire a majority interest," said John P. Hayes, president and chief executive of HomeVestors, in a statement.

"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," said Hayes. "Our company, and especially our franchisees, will gain from the support of Franchise Brands."

In 2007, Milford, Conn.-based Franchise Brands, which owns several other franchise companies, invested several million dollars in HomeVestors' operations. HomeVestors said 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 develop its business model.

Hayes said HomeVestors expects no changes in its management team. Hayes has been the company's president since late 2004 and CEO and chairman since January 2005 when the company's founder, Ken D'Angelo, died after a short illness.

Franchise Brands was formed in 2005 with support from the founders of Subway restaurants. The company provides investment capital to companies in a number of industries, including food and beverage, retail, consumer products and business services.

Web sites: www.homevestors.com, www.franchisebrandsllc.com

View all HomeVestors of America Press Releases

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