Chemed Corp., parent of Roto-Rooter, sold its Service America subsidiary through an asset sale to Service America employees. The company's decision to sell the HVAC repair/maintenance/replacement services business was based on declining operating results and projected operating losses. Net service revenues declined nearly $35.4 million dollars in the last four years, and net losses have been recorded during the same period.
The acquiring corporation will purchase a substantial portion of Service America's assets in exchange for assuming almost all of its liabilities. The sale is subject to certain regulatory and other approvals and should be completed during the first half of 2005.