The plumbing industry was rocked March 23 when The ServiceMaster Co. announced it’s acquiring American Residential Services for approximately $92 million in cash and $180 million in assumed debt. The next phase of industry consolidation has arrived: consolidators acquiring other consolidators.
Under terms of the agreement, ServiceMaster (NYSE: SVM) will offer ARS (NYSE: ARS) a cash tender offer by March 28 for all of the outstanding shares of ARS stock at a price of $5.75 per share. The deal is subject to 52 percent of ARS shareholders tendering their shares under the offer and federal regulatory approval.