FirstService Acquires Roofing Corp of America for $413M
Portfolio Pulse from Benzinga Newsdesk
FirstService Corporation (NASDAQ:FSV) has acquired Roofing Corp of America for $413M, expanding its property services portfolio. Roofing Corp, with $400M in annual revenues and higher margins than FirstService's average, operates across 11 states with over 900 employees. The deal is funded by cash and credit facility, which has a $1.25B capacity after a recent expansion.
December 18, 2023 | 12:34 pm
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POSITIVE IMPACT
FirstService's acquisition of Roofing Corp for $413M enhances its property services portfolio, potentially increasing revenue and margins due to Roofing Corp's $400M annual revenue and strong operating margins.
The acquisition of Roofing Corp is likely to have a positive short-term impact on FirstService's stock price. The deal expands FirstService's service offerings and market reach, and Roofing Corp's higher operating margins and substantial revenues are expected to contribute positively to FirstService's financials. The funding method indicates a strong financial position, which could reassure investors. However, integration risks and the impact on debt levels should be monitored.
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IMPORTANCE 85
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