Global Restoration Holdings LLC, the parent of U.S.-based Interstate Restoration and Canada’s FirstOnSite Restoration, has agreed to be acquired by FirstService Corp (TSX, Nasdaq: FSV), a Toronto-based property services provider.
FirstService agreed to pay $505 million for a 95 percent stake in the business. The deal is expected to close in the next four to six weeks.
Global Restoration is being sold by U.S. private equity firm Delos Capital. In 2016, Delos-backed Interstate acquired FirstOnSite, a Toronto-based disaster restoration company, from Canadian private equity firm TorQuest Partners.
FirstOnSite and Interstate will together become an independent brand under the FirstService umbrella.
FirstService said the acquisition facilitates its expansion in the disaster restoration space.
FirstOnSite Restoration and Interstate Restoration announce definitive agreement to be acquired by FirstService Corporation
MISSISSAUGA, Ontario, May 23, 2019 (GLOBE NEWSWIRE) — Global Restoration Holdings LLC, the parent company to Interstate Restoration and FirstOnSite Restoration, announced today the signing of a definitive agreement to be acquired by the property services firm FirstService Corporation.
“FirstService understands our business and customers well; their business lines are focused on managing properties, as well as providing services to properties and property owners,” said Dave Demos, Chief Executive Officer, FirstOnSite Restoration. “We speak the same language and we’re both focused on delivering results for our customers.”
FirstOnSite / Interstate will together become an independent company-owned brand under the FirstService umbrella, and will operate separately from other FirstService brands.
“FirstService has been looking to expand in the disaster restoration industry, and we admire the success of both FirstOnSite Restoration and Interstate Restoration,” said Scott Patterson, President and CEO of FirstService. “We now want to help accelerate that growth.”
FirstOnSite and Interstate have had a vision to be a global leader in the disaster restoration industry since they joined forces in 2016. They have both grown significantly over the last several years and have been searching for a strategic financial partner to help continue and accelerate that growth.
“This transaction represents another important milestone for our company,” said Stacy Mazur, Chief Executive Officer of Interstate Restoration. “We chose FirstService because they share our vision for strategic growth and our desire to continue to provide an exceptional experience for our clients.”
FirstOnSite/Interstate proactively chose the best partner to support its vision of strategic growth. The investment by FirstService gives the restoration organization the strongest financial platform in the industry to leverage growth, enhance buying power and to ultimately service its customers.
The agreement was signed by FirstService Corporation and Global Restoration Holdings, LLC, the holding company for Interstate Restoration and FirstOnSite Restoration.
Global Restoration is being sold by Delos Capital, a lower middle market private equity firm. Houlihan Lokey is acting as financial advisor and Goodwin Proctor as legal counsel to Global Restoration. Fogler, Rubinoff LLP and Ferrante & Associates acted as legal counsel to FirstService.
The closing of the transaction remains subject to obtaining regulatory approvals in the US and Canada. The transaction is expected to be finalized in the next four to six weeks. FirstOnSite and Interstate Restoration will continue to provide clients with exceptional service as a leading disaster recovery provider in North America.
About FirstOnSite Restoration
FirstOnSite Restoration Limited 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. With more than 35 locations, 24/7 emergency service and a commitment to customer service, FirstOnSite proudly serves the residential, commercial and industrial sectors. In May 2016, FirstOnSite joined forces with U.S.-based Interstate Restoration, expanding its resource base, and extending its customer service offering and collectively becoming the second largest restoration service provider in North America.
For more information visit: firstonsite.ca or call (877) 778-6731 or on Twitter at @firstonsite.
About FirstService Corporation
FirstService Corporation is a North American leader in the 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 approximately US$2 billion in annual revenues and has more than 20,000 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 NASDAQ and the Toronto Stock Exchange under the symbol “FSV”.
For the latest news from FirstService Corporation, visit firstservice.com.
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 North America. In 2016, Interstate acquired FirstOnSite Restoration, the leading independent Canadian disaster restoration services provider. Together, the two companies are the second-largest independent North American restoration and reconstruction services provider. With approximately 1,400 employees, Interstate Restoration and FirstOnSite assist property owners and businesses in recovering from fire, flood, natural and human-caused disasters.
For more information on Interstate Restoration, visit interstaterestoration.com, call (800) 622-6433 or on Twitter at @InterstateRest.
About Delos Capital
Delos Capital, founded in 2013, is a lower middle market private equity firm specializing in management buyouts, recapitalizations, and growth investments. For more information, visit www.deloscap.com.
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