FirstOnSite Restoration LP, a Canadian disaster restoration services business, has agreed to be acquired by its U.S. counterpart Interstate Restoration LLC. No financial terms were disclosed. The two companies said their combination will create North America’s second largest independent restoration and reconstruction services provider. The deal, which is expected to close within two months, will be funded by U.S. private equity firm Delos Capital. Delos acquired Interstate last year. Mississauga, Ont.-based FirstOnSite was formed in a merger in 2007 by Canadian private equity firm TorQuest Partners. The company sought and was granted creditor protection this month.
PRESS RELEASE
Canada’s FirstOnSite Restoration to Join Forces With U.S.-Based Interstate Restoration
MISSISSAUGA, ON –(Marketwired – April 21, 2016) – FirstOnSite Restoration G.P. Inc. (the general partner of FirstOnSite Restoration L.P.), Canada’s largest independent disaster restoration services provider, today announced that it has reached a definitive asset purchase agreement with U.S.-based Interstate Restoration LLC, subject to Court approval, under which Interstate Restoration will acquire FirstOnSite. The terms of the agreement were not disclosed.
The combination of FirstOnSite and Interstate Restoration will create the second largest independent North American restoration and reconstruction services provider, giving it greater breadth of capabilities and resources to compete more effectively and to provide the highest quality service to clients. With 19 branch locations across the United States, Interstate Restoration is one of the largest emergency restoration and reconstruction service providers for commercial enterprises.
“By combining FirstOnSite and Interstate Restoration, we will significantly improve our ability to deliver to our clients uninterrupted, best-in-class restoration and reconstruction services on both sides of the border,” said Stacy Mazur, CEO, Interstate Restoration. “The combined companies bring financial strength, a broader customer base and a wide array of resources, talented personnel and new proficiencies. FirstOnSite is well known for its experienced workforce and brings a complementary culture that focuses on rebuilding lives after disasters. Together, we will have the scale necessary to respond to commercial and residential emergencies across Canada and the U.S., from localized disasters to major catastrophes.”
“Our vision has always been to be the first and best choice for insurers, property owners and employees. Interstate Restoration brings exceptional industry and operational expertise, and this sale allows us to join forces and serve customers across the continent,” said Dave Demos, CEO of FirstOnSite Restoration. “Interstate Restoration complements our Canadian service, and we intend to work together to share best practices across the border.”
The transaction, which has the full support of each company’s board of directors and FirstOnSite’s key financial stakeholders, will be implemented by way of proceedings under the Companies’ Creditors Arrangement Act (CCAA). As such, today, FirstOnSite sought and has been granted an order by the Ontario Superior Court of Justice for a stay of proceedings under the CCAA.
The companies expect the transaction to close in less than two months. Delos Capital, a U.S.-based private equity fund, will provide Interstate Restoration with committed financing for the transaction.
“As part of our strategy of backing the best management teams in their respective industries, we are proud to support the Interstate Restoration team and FirstOnSite to continue to build the best-in-class restoration company in North America,” said Matt Constantino, founder of Delos Capital.
Alvarez & Marsal Canada Securities ULC acted as FirstOnSite’s financial advisor and investment banker in the sale and investment solicitation process. Under the terms of the Initial Order, FTI Consulting Canada Inc. will serve as the Court-appointed Monitor of FirstOnSite. Details of the CCAA filing and related matters will soon be available on the Monitor’s website: http://cfcanada.fticonsulting.com/firstonsite.
About Interstate Restoration
Founded in 1998, Interstate Restoration, LLC, based in Ft. Worth, Texas, is one of the largest emergency restoration and reconstruction service providers for commercial enterprises in the United States. Interstate Restoration specializes in assisting property owners and businesses in recovering from fire, flood, natural and human-caused disasters. With 19 regional offices in the U.S., Interstate Restoration has the scalability to respond to any-sized catastrophe and help people get back to business and back to life quickly and safely. For more information, visit www.interstaterestoration.com, call 800-622-6433 or follow us on Twitter at @InterstateRest.
About FirstOnSite
FirstOnSite Restoration L.P. is the leading independent Canadian disaster restoration services provider, providing remediation, restoration and reconstruction services nationwide, and for the U.S. large loss and commercial market.
FirstOnSite’s organizational structure is distinguished within the industry as it provides degrees of speed, scope and scale, including abilities to embrace innovations and technologies that help meet the unique needs of its customers. With approximately 1,000 employees, 38 locations, 24/7 emergency service and a commitment to customer service, FirstOnSite proudly serves the residential, commercial and industrial sectors. FirstOnSite has been a recipient of the Deloitte Best Managed Company award since 2012, and is an approved vendor for many leading insurance companies and commercial clients. For more information visit: www.firstonsite.ca or call 1.877.778. 6731, and follow @firstonsite on Twitter at www.twitter.com/firstonsite.
Contact Information
Press Contacts:
FirstOnSite:
Colin Nekolaichuk
416-640-5525 ext. 253
colinn@wearemaverick.com
Interstate Restoration:
Marc Lumpkin
303-378-2366
marc@altitudepr.com
Photo courtesy of FirstOnSite Restoration LP
If you do not receive this within five minutes, please try and sign in again. If the problem persists, please
email: subscriptions@peimedia.com.