Roto-Rooter Services Company has acquired all of Hoffman Southwest Corporation’s Roto-Rooter franchise operations, taking over fourteen franchise service operations in the western U.S. Hoffman Southwest is Roto-Rooter’s largest independent franchise operator.
Through this purchase, Roto-Rooter has acquired 450 vehicles previously owned by Hoffman Southwest which are being rolled into the company fleet. Paul Abrams, public relations director for Roto-Rooter, told Work Truck that most of these vehicles are service vans of various makes and models, but the fleet also includes dump trucks, flatbed trucks, pickup trucks, and pump trucks.
Merchants Fleet, which previously managed the fleet of 450 vehicles on behalf of Hoffman Southwest, will continue to manage fuel cards, maintenance, titles, and registrations for the new acquisitions. ARI manages the rest of Roto-Rooter’s fleet.
This is Roto-Rooter’s largest franchise acquisition to date, with annual sales of $78 million. The franchised territories include California, Texas, Arizona, Utah, and Oregon. Collectively, the acquired locations serve a population of approximately 32 million people.
The deal closed effective September 16, 2019. This purchase is part of Roto-Rooter's ongoing strategy of acquiring franchises to boost productivity, market share, and profitability.
“Bringing these important western markets under company control allows us to leverage our proven internal operating systems, expand the list of services offered and grow our customer base. We will remain focused on providing the highest quality service to our residential and commercial customers in these new markets,” said Roto-Rooter CEO Spencer Lee.
In most states where Roto-Rooter’s company-owned branches operate, service technicians own and maintain their vehicles. But the company does own a fleet of 1,500 company-owned vehicles, including the 450 acquired from Hoffman Southwest.
Originally posted on Work Truck Online
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