Roto-Rooter Buys Largest Franchisee Territory

Chemed (CHE), through its wholly owned subsidiary Roto-Rooter Services Company, acquired the largest independent Roto-Rooter franchise for $60.6 million.

Rhea-AI Summary

Chemed (CHE), through its wholly owned subsidiary Roto-Rooter Services Company, acquired the largest independent Roto-Rooter franchise for $60.6 million.

The acquired franchise serves a population of about 11 million people and previously generated annual revenue between $50.0 million and $55.0 million. The territories include Northern San Diego, Palm Springs, Ventura, Bakersfield, Lancaster, Fresno, Monterey, Stockton, Modesto, Manteca and Sacramento in California. Chemed, listed on the New York Stock Exchange and headquartered in Cincinnati, operates two wholly owned subsidiaries, VITAS Healthcare and Roto-Rooter, which it describes as national leaders in hospice care and plumbing and drain cleaning services respectively. The company includes standard cautionary language regarding forward-looking statements and associated risks.

Positive

• Acquisition price $60.6 million for largest Roto-Rooter franchise
• Added revenue base target franchise generated $50–55 million annually pre-deal
• Expanded reach new territories serve approximately 11 million people

Negative

• Capital outlay $60.6 million purchase price for the franchise

News Explained

The completed acquisition's disclosed price is $60.6 million, larger than Chemed's $40.222 million of cash and equivalents reported at June 30, 2026; the release does not identify the funding source.

Market Context

-0.56% was CHE's 24-hour reaction to the June 8 Roto-Rooter territory acquisition, providing a direc...

Analysis

-0.56% was CHE's 24-hour reaction to the June 8 Roto-Rooter territory acquisition, providing a directly comparable prior franchise purchase against today's $60.6 million California territory acquisition.

Key Figures

Acquisition price: $60.6 million Annual revenue: $50.0–$55.0 million Population served: Approximately 11 million people

Acquisition price

$60.6 million

Largest independent Roto-Rooter franchise acquisition

Annual revenue

$50.0–$55.0 million

Acquired franchise prior to acquisition

Population served

Approximately 11 million people

Acquired franchise territory

Historical Context

1 past event · Latest: Jun 08

1 event

1. Jun 08

   Franchise acquisition

   24h Move

   -0.6%

   Roto-Rooter acquired a 21-county south Texas franchise for approximately $12.0 million

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

forward-looking statements

1 terms

forward-looking statements regulatory

"Such statements are forward-looking statements and are based on present information"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CINCINNATI, Sept. 16, 2026 (GLOBE NEWSWIRE) -- Roto-Rooter Services Company, a wholly owned subsidiary of Chemed Corporation ("Chemed") (NYSE: CHE) announced it has acquired the largest independent Roto-Rooter franchise, serving a population of approximately 11 million people, for $60.6 million. Prior to the acquisition, this franchise had annual revenue of between $50.0 and $55.0 million. The territories acquired include Northern San Diego, Palm Springs, Ventura, Bakersfield, Lancaster, Fresno, Monterey, Stockton, Modesto, Manteca and Sacramento, California.  

Listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio, Chemed Corporation (www.chemed.com) operates two wholly owned subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is the nation's largest provider of end-of-life hospice care and Roto-Rooter is the nation’s leading provider of plumbing and drain cleaning services.

Statements in this press release or in other Chemed communications may relate to future events or Chemed's future performance. Such statements are forward-looking statements and are based on present information Chemed has related to its existing business circumstances. Investors are cautioned that such forward-looking statements are subject to inherent risk and that actual results may differ materially from such forward-looking statements. Further, investors are cautioned that Chemed does not assume any obligation to update forward-looking statements based on unanticipated events or changed expectations.

CONTACT:	Michael D. Witzeman
	(513) 762-6714