FirstService Completes Acquisition of Global Restoration Holdings
June 21 2019 - 11:45AM
FirstService Corporation (TSX and NASDAQ: FSV) (“FirstService”)
announced today that it has completed its previously announced
acquisition of approximately 95% of Global Restoration Holdings,
LLC (“Global Restoration”), the second largest commercial and large
loss property restoration firm in North America, for a purchase
price of approximately $505 million. Global Restoration’s senior
management team, including Jeff Johnson, Stacy Mazur and Dave
Demos, continue to lead Global Restoration’s day-to-day operations
and have retained the balance of the equity.
Headquartered in Denver, Colorado and founded in
1998, Global Restoration provides integrated end-to-end solutions
encompassing mitigation, restoration and reconstruction services on
behalf of blue chip, national clients which include large,
multi-location commercial customers, property owners and insurance
companies. Global Restoration operates under two highly recognized
brands, Interstate Restoration in the U.S. and FirstOnSite
Restoration in Canada, and employs approximately 1,400 staff
operating out of 58 regional offices throughout North America. For
the fiscal year ended December 31, 2018, Global Restoration
generated revenues of $436 million and operating earnings of $40
million.
In connection with the completion of the
acquisition, FirstService has entered into an $890 million amended
and restated credit facility (the “New Credit Agreement”),
consisting of its existing $450 million revolving credit facility
and a new $440 million term loan. The maturity date of the
revolving credit facility under the New Credit Agreement remains
January 2023, and the maturity date of the term loan under the New
Credit Agreement is June 2024. Repayment of the term loan is to be
made in installments of 5% per annum, paid quarterly, commencing in
September 2020, with the balance payable at maturity. The new term
loan commitments under the New Credit Agreement were substantially
oversubscribed by a syndicate of 12 banks, led by The
Toronto-Dominion Bank and including Bank of Montreal, Canadian
Imperial Bank of Commerce, HSBC Bank, The Bank of Nova Scotia, JP
Morgan Chase Bank, U.S. Bank, Bank of America, MUFG Union Bank,
National Bank, Raymond James Bank and Wells Fargo Bank.
The Global Restoration acquisition was funded
through a combination of the new term loan, additional funds drawn
under the revolving credit facility and available cash on hand. The
revolving credit facility under the New Credit Agreement will
continue to be utilized for working capital and general corporate
purposes and to fund FirstService’s tuck-under acquisition
program.
“We appreciate the strong endorsement and
confidence of our bank group in providing us with the necessary
financing to complete this significant acquisition,” said Jeremy
Rakusin, Chief Financial Officer. “At the same time, we will
continue to ensure we maintain financial flexibility to drive all
growth initiatives across FirstService’s business lines,” he
added.
“With the successful closing of the transaction,
I am delighted to formally welcome the entire Global Restoration
team into the FirstService family,” said Scott Patterson, Chief
Executive Officer. “We are excited about the complementary fit
between Global Restoration and our Paul Davis franchise system and
look forward to working closely with both teams to accelerate
growth in the property restoration industry,” he concluded.
ABOUT FIRSTSERVICE
CORPORATIONFirstService Corporation is a North
American leader in the essential outsourced property services
sector, serving its customers through two industry-leading service
platforms: FirstService Residential, North America’s largest
manager of residential communities; and FirstService Brands,
one of North America’s largest providers of essential property
services delivered through individually branded franchise systems
and company-owned operations.
FirstService generates more than $2 billion in
annual revenues and has approximately 22,000 employees across North
America. With significant insider ownership and an experienced
management team, FirstService has a long-term track record of
creating value and superior returns for shareholders. The
Common Shares of FirstService trade on the NASDAQ and the Toronto
Stock Exchange under the symbol “FSV”.
For the latest news from FirstService
Corporation, visit www.firstservice.com.
FORWARD-LOOKING STATEMENTSThis
press release contains statements that constitute “forward-looking
statements” within the meaning of applicable securities
legislation, including, but not limited to, the expected
continuation of Global Restoration’s senior management team and the
impact of the acquisition on FirstService’s business, growth and
future financial and operating results. Much of this information
can be identified by words such as “expect to,” “expected,” “will,”
“estimated” or similar expressions suggesting future outcomes or
events. FirstService believes the expectations reflected in such
forward-looking statements are reasonable but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon.
Forward-looking statements are based on current
information and expectations that involve a number of risks and
uncertainties, which could cause actual results or events to differ
materially from those anticipated. These risks include, but are not
limited to, risks that: FirstService is unable to promptly and
effectively integrate Global Restoration’s businesses; management’s
time and attention is diverted on integration-related issues;
FirstService or Global Restoration is unable to retain key
personnel; and other risks related to FirstService’s business,
including those identified in FirstService’s annual information
form for the year ended December 31, 2018 under the heading “Risk
factors” (a copy of which may be obtained at www.sedar.com) and
Annual Report on Form 40-F filed with the United States Securities
and Exchange Commission (a copy of which may be obtained at
www.sec.gov), and subsequent filings. Forward-looking statements
contained in this press release are made as of the date hereof and
are subject to change. All forward-looking statements in this press
release are qualified by these cautionary statements. Unless
otherwise required by applicable securities laws, we do not intend,
nor do we undertake any obligation, to update or revise any
forward-looking statements contained in this press release to
reflect subsequent information, events, results or circumstances or
otherwise.
COMPANY CONTACTS:
D. Scott
PattersonPresident &
CEOFirstService Corporation(416)
960-9500
Jeremy
RakusinCFOFirstService
Corporation(416) 960-9500
FirstService (NASDAQ:FSV)
Historical Stock Chart
From Mar 2024 to Apr 2024
FirstService (NASDAQ:FSV)
Historical Stock Chart
From Apr 2023 to Apr 2024