CINCINNATI--(BUSINESS WIRE)--Aug. 29, 2003--Roto-Rooter Inc.
(NYSE:RRR) (OTCBB:CHEQP) today announced that it has a signed letter
of intent to purchase the Roto-Rooter franchise operations in Orange
County and San Diego, Calif.; Eugene, Portland, and Salem, Ore.; Salt
Lake City, Provo, and Park City, Utah; Phoenix and Tucson, Ariz.; and
Dallas and El Paso, Texas. The revenues from these combined operations
total approximately $47 million annually.
The franchise operations being acquired serve areas with a
population of 20.6 million. Once the acquisition has been completed,
Roto-Rooter company-owned locations will offer services in territories
encompassing more than 147 million people, or 52 percent of the U.S.
population. The total Roto-Rooter system, including franchisees,
company-owned branches, and independent contractors, offers services
to more than 90 percent of the U.S. population.
The acquisition is expected to close in the fourth quarter of
2003. The purchase price has not been disclosed.
Roto-Rooter President and Chief Executive Officer Kevin J.
McNamara said, "This acquisition marks the accomplishment of a major,
stated goal for Roto-Rooter. This was the largest franchisee in the
Roto-Rooter system and one of the originals, dating back to 1947. The
purchase of these franchise territories enables us to recognize 100
percent of the revenues and income generated. Previously, our revenues
and profits from these locations were derived from franchise fees."
Roto-Rooter Inc. (www.RotoRooter.com), headquartered in
Cincinnati, is a New York Stock Exchange-listed corporation operating
in the residential and commercial repair-and-maintenance-service
industry through two wholly owned subsidiaries. Roto-Rooter is North
America's largest provider of plumbing and drain cleaning services.
Service America Systems Inc. provides major-appliance and
heating/air-conditioning repair, maintenance, and replacement
Statements in this press release or in other Roto-Rooter
communications may relate to future events or Roto-Rooter's future
performance. Such statements are forward-looking statements and are
based on present information Roto-Rooter has related to its existing
business circumstances. Investors are cautioned that such
forward-looking statements are subject to inherent risk that actual
results may differ materially from such forward-looking statements.
Further, investors are cautioned that Roto-Rooter does not assume any
obligation to update forward-looking statements based on unanticipated
events or changed expectations.
CONTACT: Roto-Rooter Inc.
Timothy S. O'Toole, 513-762-6702
SOURCE: Roto-Rooter Inc.