Roto-Rooter Services Company, a wholly owned subsidiary of Chemed Corporation, has announced the acquisition of a formerly independent Roto-Rooter franchise in South Texas for ~$12 million. This strategic expansion adds 21 counties to the company’s service area, including prominent cities such as Corpus Christi, McAllen, Laredo, and Brownsville.
Roto-Rooter, as you probably know, is renowned for being the nation's leading provider of plumbing and drain cleaning services. By integrating this territory, the company strengthens its position in the South Texas region, a market with considerable growth potential.
Roto-Rooter was founded in 1935 and has grown to operate 120 company-owned branches and independent contractors and 345 franchisees. The total Roto-Rooter system offers services to more than 90% of the U.S. population and approximately 30% of the Canadian population.
Chemed Corporation, headquartered in Cincinnati, Ohio, is listed on the New York Stock Exchange under the ticker symbol CHE. The company operates two wholly owned subsidiaries: Roto-Rooter and VITAS Healthcare, the latter being the largest provider of end-of-life hospice care in the United States.
In its announcement, the company emphasized that certain statements regarding future events or performance are forward-looking and based on current business circumstances. Investors were cautioned about potential risks and reminded that actual results could differ materially from these projections. Additionally, Chemed stated it does not commit to updating forward-looking statements in response to unforeseen events or changes in expectations.
This acquisition underscores Roto-Rooter’s commitment to expanding its reach and enhancing its services in key markets across the United States. As the company continues to grow, it maintains its focus on delivering reliable plumbing and drain cleaning solutions to communities nationwide.
