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Just a few months after it began to acquire hvac contractors, ServiceMaster's Rescue Rooter unit is ready to swallow up troubled American Residential Services.
HOUSTON -Rumors had been circulating for weeks before it was confirmed: Mega-hvac-consolidator American Residential Services (ARS) will be acquired by ultra-everything-consolidator ServiceMaster Co. (SVM).
Under terms of the agreement, ServiceMaster will initiate a cash tender offer for all outstanding shares of ARS common stock at $5.75 per share. The total acquisition cost includes approximately $92 million in cash and $180 million of assumed indebtedness.
ARS, one of the first of the hvac national consolidators, was formed in 1996. The Houstonbased company had 1998 annualized revenues of more than $550 million and operates in 59 markets. The company provides maintenance, repair, and replacement services for hvac, plumbing, electrical, and other major appliances in residential and commercial buildings.
ServiceMaster owns a network of service companies including TruGreen-Chemlawn, Terminix,...