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First Onsite Restoration Enhances Geographic Footprint in Growing Southeast U.S. Region

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FirstService 's subsidiary, First Onsite Property Restoration, acquires All Restoration Solutions, , a leading provider of commercial property restoration services in Georgia and South Carolina. The acquisition strengthens First Onsite's market position in the Southeast U.S. with a focus on the Atlanta metropolitan area.
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The acquisition of All Restoration Solutions by FirstService Corporation's subsidiary, First Onsite Property Restoration, signifies a strategic expansion within the property restoration and capital improvement services industry. This move is a clear indicator of FirstService's intent to solidify its market presence, particularly in the Atlanta metropolitan area which is recognized for its economic growth and development potential.

From a market perspective, the decision to maintain ARS's executive leaders in their roles, while allowing them to retain a minority equity stake, is a strategic one. It ensures continuity in management and operations, which is vital for preserving the acquired company's established client relationships, especially in sectors like multi-family property management, education and healthcare. These sectors are not only stable but often recession-resistant, making them valuable additions to FirstService's portfolio.

Moreover, the lack of disclosure regarding the terms of the transaction does not provide a basis for evaluating the financial impact of the acquisition. However, investors typically look favorably upon acquisitions that can drive synergies and enhance market share, particularly when the acquired company has a strong leadership team and a reputation for service excellence.

With the acquisition of ARS, FirstService has made a notable investment in the Southeast U.S. market. The move suggests an aggressive growth strategy, aiming at expanding FirstService's footprint in a region that has shown consistent demand for property restoration services. This demand is often driven by factors such as natural disasters, which are unfortunately common in the area and the ongoing need for capital improvements in aging infrastructure.

In the absence of financial terms, evaluating the deal's immediate impact on FirstService's balance sheet is challenging. However, the long-term benefits may include revenue growth from cross-selling opportunities and increased bargaining power with suppliers due to larger volume. The potential drawbacks could involve integration risks and the challenge of aligning corporate cultures. Investors should monitor future financial disclosures to better understand how this acquisition affects FirstService's profitability and cash flow.

The acquisition of a company with strong ties in the multi-family, education and healthcare sectors indicates a strategic move into markets that have historically provided stable cash flows. These sectors are known for their long-term contracts and repeat business, which can provide a buffer during economic downturns. The focus on commercial property restoration and capital improvements is a response to the aging infrastructure and the heightened need for maintenance and upgrades.

Furthermore, the Atlanta metropolitan area is experiencing significant growth, with an increasing population and business expansion. This growth translates into a higher demand for commercial property services. By acquiring a well-established local player, FirstService is not just expanding its geographic reach but also tapping into a network of established institutional clients, which can lead to a more diversified and resilient revenue stream.

Acquires All Restoration Solutions

TORONTO, April 10, 2024 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX and NASDAQ: FSV) (“FirstService”) announced today that its subsidiary, First Onsite Property Restoration (“First Onsite”), has recently acquired All Restoration Solutions, LLC (“ARS” or the “Company”). The executive leaders of ARS will continue to hold a minority equity stake and oversee day-to-day operations. Terms of the transaction were not disclosed.

Established in 2006 and based in Atlanta, Georgia, ARS is a leading provider of commercial property restoration and capital improvement services across four branches in Georgia and South Carolina. The Company serves a diverse portfolio of institutional clients, with particularly strong relationships in the multi-family property management, education and healthcare industries. With the addition of ARS, First Onsite has established a strong market leadership position in the large and growing Atlanta metropolitan area.

“This acquisition is highly complementary to our existing presence in the Southeast U.S.,” said Jeff Johnson, Chief Executive Officer of First Onsite. “ARS brings a strong leadership team and reputation for service excellence, while adding a blue-chip client base in attractive market sectors. We welcome the ARS team and look forward to collectively driving growth in this high-priority region,” he concluded.

ABOUT FIRSTSERVICE CORPORATION

FirstService Corporation is a North American leader in the essential outsourced property services sector, serving its customers through two industry-leading service platforms: FirstService Residential, North America's largest manager of residential communities; and FirstService Brands, one of North America's largest providers of essential property services delivered through individually branded company-owned operations and franchise systems.

FirstService generates more than $4.3 billion in annual revenues and has approximately 29,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The Common Shares of FirstService trade on the NASDAQ and the Toronto Stock Exchange under the symbol "FSV", and are included in the S&P/TSX 60 Index. 

For the latest news from FirstService Corporation, visit www.FirstService.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian and U.S. securities laws. Much of this information can be identified by words such as “expect to,” “expected,” “will,” “estimated” or similar expressions suggesting future outcomes or events. FirstService believes the expectations reflected in such forward-looking information and statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information and statements should not be unduly relied upon. Forward-looking information and statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those anticipated. These risks include, but are not limited to, the risks related to FirstService’s business, including those identified in FirstService’s annual information form for the year ended December 31, 2023 under the heading “Risk factors” (a copy of which may be obtained at www.sedarplus.ca or as part of FirstService’s Form 40-F at www.sec.gov). Forward-looking information and statements contained in this news release are made as of the date hereof and are subject to change. All forward-looking information and statements in this news release are qualified by these cautionary statements. Except as required by applicable law, FirstService undertakes no obligation to update any forward-looking information and statement, whether as a result of new information, future events or otherwise.

COMPANY CONTACT:

Jeremy Rakusin
CFO
FirstService Corporation
(416) 960-9566


FAQ

What company did FirstService 's subsidiary acquire?

First Onsite Property Restoration acquired All Restoration Solutions,

Where is All Restoration Solutions based?

All Restoration Solutions is based in Atlanta, Georgia.

What services does All Restoration Solutions provide?

All Restoration Solutions is a leading provider of commercial property restoration and capital improvement services.

In which industries does All Restoration Solutions have strong relationships?

All Restoration Solutions has strong relationships in the multi-family property management, education, and healthcare industries.

What is the significance of the acquisition for First Onsite?

The acquisition strengthens First Onsite's market leadership position in the Atlanta metropolitan area and the Southeast U.S.

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About FSV

firstservice corporation, together with its subsidiaries, provides residential property services to residential and commercial customers in the united states and canada. the company operates through two segments, firstservice residential and firstservice brands. the firstservice residential segment provides property management services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. this segment also offers a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service swimming pool and amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related services, and specialized property insurance brokerage. in addition, this segment provides energy management solutions and advisory services, and resale