business merger

Roto-Rooter Services Co. Acquires Hoffman Southwest’s Roto-Rooter Franchise Operations

Roto-Rooter Services Co., a wholly owned subsidiary of Chemed Corp. 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 14 franchise service operations in the Western United States.

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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.

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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.”

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The deal closed effective Sept. 16. This purchase is part of Roto-Rooter’s ongoing strategy of acquiring franchises to boost productivity, market share and profitability.

Established in 1935, Roto-Rooter is the largest provider of plumbing repair and sewer and drain cleaning services in North America. It operates businesses in 130 company-owned territories and approximately 400 franchise territories, serving approximately 91 percent of the U.S. population and 40 percent of the Canadian population.

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SOURCE – Roto-Rooter Services Co.