CINCINNATI, Sept. 16, 2019 /PRNewswire/ -- Roto-Rooter
Services Company, a wholly owned subsidiary of Chemed Corporation
("Chemed") (NYSE: CHE), announced it has acquired all of Hoffman
Southwest Corporation's Roto-Rooter franchise operations for a
purchase price of $120 million.
Hoffman Southwest is Roto-Rooter's largest independent franchise
operator. The acquisition means that Roto-Rooter takes over
fourteen franchise service operations in the western U.S.
This is Roto-Rooter's largest franchise acquisition to date,
with annual sales of $78 million. The
franchised territories include: Metro Los Angeles (including Inland
Empire, San Fernando Valley, San Gabriel County and Orange County) and San Diego, California; Dallas and El Paso,
Texas; Phoenix,
Tucson, and Florence, Arizona; Salt Lake City, Ogden, Park
City and Provo, Utah; and
Portland and Salem, Oregon. Collectively, these Roto-Rooter
locations serve a population of approximately 32 million
people.
Roto-Rooter CEO, Spencer Lee,
said this acquisition was a long-term goal for the company.
"Bringing these important western markets under company control
allows us to leverage our proven internal operating systems, expand
the list of services offered and grow our customer base. We will
remain focused on providing the highest quality service to our
residential and commercial customers in these new markets."
The deal closed effective September 16,
2019. This purchase is part of Roto-Rooter's ongoing
strategy of acquiring franchises to boost productivity, market
share and profitability.
Roto-Rooter was established in 1935 and is the largest provider
of plumbing repair and sewer & drain cleaning services in
North America. Roto-Rooter also
provides water damage cleanup services in most of its locations. It
operates businesses in 130 company-owned territories and
approximately 400 franchise territories, serving approximately 91
percent of the U.S. population and 40% of the Canadian population.
Roto-Rooter also has licensed master franchises in the republics of
Indonesia and Singapore, and the
Philippines. For more information about Roto-Rooter, please
visit www.rotorooter.com
Listed on the New York Stock Exchange and headquartered in
Cincinnati, Ohio, Chemed
Corporation (www.chemed.com) operates two wholly owned
subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is the
nation's largest provider of end-of-life hospice care and
Roto-Rooter is the nation's leading provider of plumbing repair and
drain cleaning services.
CONTACT:
Paul
Abrams
Public Relations
Director
513-762-6434
Paul.Abrams@rrsc.com
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SOURCE Roto-Rooter