Plumbing and Mechanical

Roto-Rooter Acquires Franchises

October 7, 2003
Roto-Rooter Inc. has signed a letter of intent to purchase the Roto-Rooter franchise operations in San Diego and Orange County, Calif.; Eugene, Portland and Salem, Ore.; Salt Lake City, Provo and Park City, Utah; Phoenix and Tucson, Ariz.; and Dallas and El Paso, Texas. Roto-Rooter President and CEO Kevin J. McNamara said the acquisition “marks the accomplishment of a major, stated goal for Roto-Rooter.”

The franchisee is the largest in the Roto-Rooter system, as well as one of the originals. The acquisition is expected to close in the fourth quarter of 2003. The purchase price was not disclosed, but revenues from the combined operations total nearly $47 million a year.

In other news, Roto-Rooter’s board of directors announced a quarterly cash dividend of 12 cents per share on its capital stock, payable on Sept. 10, 2003, to stockholders of record on Aug. 21, 2003.