Home Solutions of America Signs Letter of Intent to Acquire Home Warranty Business
April 06 2004 - 10:01AM
PR Newswire (US)
Home Solutions of America Signs Letter of Intent to Acquire Home
Warranty Business Accretive Acquisition Candidate Generates $1.7
Million in EBITDA HOUSTON, April 6 /PRNewswire-FirstCall/ -- Home
Solutions of America, Inc. , a niche provider of specialty
residential services, announced today it has signed a letter of
intent to acquire a home warranty provider for $8.5 million, net of
approximately $1.5 million in excess cash currently in the
business. The acquisition candidategenerates approximately $1.7
million in EBITDA and is experiencing 20% top line growth per year.
This acquisition price reflects a 5.0x EBITDA multiple. "Home
warranties are quickly becoming a standard purchase for the
American homeowner in both the home buying process as well as for
on-going maintenance," said Frank Fradella, Chairman and CEO of
Home Solutions. "With this acquisition, Home Solutions enters a
marketplace that is experiencing strong top line growth from an
increased number of home sales, greater penetration of home
warranties included in the home sale and increased homeowner
interest in home warranties for annual maintenance. Furthermore,
there are compelling synergies as our existing business lines offer
additional sales channels for the home warranty product. This
acquisition, if it closes and receives regulatory approvals, is
expected to be accretive to earnings in 2004." Home Solutions is a
niche provider of specialty residential services including
Restoration Services and Specialty Interior Services. The Company
has operations in the California, Texas and Florida markets and is
rapidly growing its core business through both an internal and an
acquisition strategy. For more information on Home Solutions,
please see our website at http://www.homcorp.com/ . Statements
included in this update that are not historical in nature are
intended to be, and are hereby identified as, "forward-looking
statements" for purposes of the safe harbor provided by Section 21E
of the Securities Exchange Act of 1934, as amended by Public Law
104-67. Forward-looking statements may be identified by words
including "anticipate," "believe," "intends," "estimates,"
"expect," and similar expressions. The Company cautions readers
that forward-looking statements including, without limitation,
those relating to the Company's future business prospects are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those indicated in the
forward-looking statements, due to factors such as those relating
to economic, governmental, technological, and other risks and
factors identified from time to time in the Company's reports filed
with the SEC. HOME SOLUTIONS OF AMERICA, INC CONTACT: Cormac Glynn,
CEOcast, Inc. PHONE: 212-732-4300 DATASOURCE: Home Solutions of
America, Inc. CONTACT: Cormac Glynn of CEOcast, Inc.,
+1-212-732-4300, for Home Solutions of America, Inc. Web site:
http://www.homcorp.com/
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