Kingsway Announces Acquisition of AAA Flexible Pipe Cleaning Corp.
Kingsway Financial Services (NYSE:KFS) has announced the acquisition of AAA Flexible Pipe Cleaning Corp (Advanced Plumbing and Drain) for $3.5 million, with a potential earn-out of up to $1.5 million. The Cleveland-based plumbing services company, founded in 1926, represents Kingsway Search Xcelerator's 10th acquisition and the second business under the Kingsway Skilled Trades platform.
The transaction includes $3.0 million cash at closing, a $0.5 million seller note due in 2030, and the potential earn-out payable in 2027-2028. Advanced Plumbing and Drain generates unaudited pro-forma annual revenue of $7.0 million and adjusted EBITDA of $0.7 million, with 90% of revenues being recurring or reoccurring. The company's customer base is split between 65% commercial and 35% residential services.
Kingsway Financial Services (NYSE:KFS) ha annunciato l'acquisizione di AAA Flexible Pipe Cleaning Corp (Advanced Plumbing and Drain) per 3,5 milioni di dollari, con un possibile earn-out fino a 1,5 milioni di dollari. L'azienda di servizi idraulici con sede a Cleveland, fondata nel 1926, rappresenta la decima acquisizione di Kingsway Search Xcelerator e la seconda attivit脿 sotto la piattaforma Kingsway Skilled Trades.
La transazione prevede 3,0 milioni di dollari in contanti al momento della chiusura, una nota venditore di 0,5 milioni di dollari con scadenza nel 2030 e un potenziale earn-out pagabile nel 2027-2028. Advanced Plumbing and Drain genera ricavi pro-forma annuali non revisionati di 7,0 milioni di dollari e un EBITDA rettificato di 0,7 milioni di dollari, con il 90% dei ricavi ricorrenti o ripetuti. La base clienti dell'azienda 猫 suddivisa tra il 65% di servizi commerciali e il 35% di servizi residenziali.
Kingsway Financial Services (NYSE:KFS) ha anunciado la adquisici贸n de AAA Flexible Pipe Cleaning Corp (Advanced Plumbing and Drain) por 3,5 millones de d贸lares, con un posible earn-out de hasta 1,5 millones de d贸lares. La empresa de servicios de fontaner铆a con sede en Cleveland, fundada en 1926, representa la d茅cima adquisici贸n de Kingsway Search Xcelerator y el segundo negocio bajo la plataforma Kingsway Skilled Trades.
La transacci贸n incluye 3,0 millones de d贸lares en efectivo al cierre, una nota del vendedor de 0,5 millones de d贸lares con vencimiento en 2030 y un posible earn-out pagadero en 2027-2028. Advanced Plumbing and Drain genera ingresos anuales proforma no auditados de 7,0 millones de d贸lares y un EBITDA ajustado de 0,7 millones de d贸lares, con el 90% de los ingresos siendo recurrentes o repetitivos. La base de clientes de la empresa se divide en un 65% servicios comerciales y un 35% servicios residenciales.
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Kingsway Financial Services (NYSE:KFS) a annonc茅 l'acquisition de AAA Flexible Pipe Cleaning Corp (Advanced Plumbing and Drain) pour 3,5 millions de dollars, avec un earn-out potentiel allant jusqu'脿 1,5 million de dollars. Cette entreprise de services de plomberie bas茅e 脿 Cleveland, fond茅e en 1926, repr茅sente la dixi猫me acquisition de Kingsway Search Xcelerator et la deuxi猫me soci茅t茅 sous la plateforme Kingsway Skilled Trades.
La transaction comprend 3,0 millions de dollars en esp猫ces 脿 la cl么ture, une note vendeur de 0,5 million de dollars 茅ch茅ant en 2030, ainsi qu'un earn-out potentiel payable en 2027-2028. Advanced Plumbing and Drain g茅n猫re un chiffre d'affaires annuel pro forma non audit茅 de 7,0 millions de dollars et un EBITDA ajust茅 de 0,7 million de dollars, avec 90 % des revenus r茅currents ou r茅p茅titifs. La client猫le de l'entreprise est r茅partie entre 65 % de services commerciaux et 35 % de services r茅sidentiels.
Kingsway Financial Services (NYSE:KFS) hat die 脺bernahme von AAA Flexible Pipe Cleaning Corp (Advanced Plumbing and Drain) f眉r 3,5 Millionen US-Dollar bekanntgegeben, mit einem m枚glichen Earn-out von bis zu 1,5 Millionen US-Dollar. Das in Cleveland ans盲ssige Sanit盲rdienstleistungsunternehmen, gegr眉ndet 1926, stellt die zehnte Akquisition von Kingsway Search Xcelerator und das zweite Unternehmen unter der Kingsway Skilled Trades-Plattform dar.
Die Transaktion umfasst 3,0 Millionen US-Dollar in bar bei Abschluss, eine Verk盲uferanleihe in H枚he von 0,5 Millionen US-Dollar mit F盲lligkeit 2030 sowie einen potenziellen Earn-out, der 2027-2028 zahlbar ist. Advanced Plumbing and Drain erwirtschaftet unaudited Pro-forma-Jahresums盲tze von 7,0 Millionen US-Dollar und ein bereinigtes EBITDA von 0,7 Millionen US-Dollar, wobei 90 % der Ums盲tze wiederkehrend oder regelm盲脽ig sind. Die Kundenbasis des Unternehmens teilt sich auf in 65 % gewerbliche und 35 % private Dienstleistungen.
- 90% of revenues are recurring or reoccurring, providing stable cash flow
- Strong market position in Cleveland metropolitan area with nearly century-long operational history
- Acquisition price of $3.5M represents 5x unaudited pro-forma annual adjusted EBITDA
- Diversified customer base across commercial (65%) and residential (35%) sectors
- Additional $1.5M earn-out payment could increase acquisition cost by 43%
- Potential integration challenges as second business under Kingsway Skilled Trades platform
- Geographic concentration risk in Cleveland metropolitan area
Insights
KFS acquires profitable plumbing business for 5x EBITDA, adding recurring revenue to its portfolio as part of its search fund strategy.
Kingsway Financial Services has completed its 10th acquisition under its Search Xcelerator initiative, purchasing Advanced Plumbing and Drain for
The acquisition metrics look favorable with a maximum 7.1x EBITDA multiple (
What makes this acquisition particularly attractive is the recurring revenue profile, with approximately
This acquisition aligns with Kingsway's unique public company search fund model, where they acquire and build businesses using the search fund approach. This is their second acquisition within their Skilled Trades platform, indicating a focused vertical strategy. Management has signaled plans for accelerated investment in people, service lines, and marketing, suggesting potential for margin expansion and organic growth beyond current performance.
Kingsway Search Xcelerator's 10th Acquisition
Asset-light plumbing services business with recurring revenues and leading market position
Purchase price of
$3.5 million , plus a potential earn-out of up to$1.5 million , for a total maximum purchase price of$5.0 million Unaudited pro-forma annual revenue of
$7.0 million Unaudited pro-forma annual adjusted EBITDA of
$0.7 million
CHICAGO, IL / / August 5, 2025 / Kingsway Financial Services Inc. (NYSE:KFS) ("Kingsway" or the "Company"), the only publicly-traded US company employing the Search Fund model to acquire and build great businesses, today announced the acquisition of AAA Flexible Pipe Cleaning Corp ("Advanced Plumbing and Drain"), a leading commercial and residential plumbing services business located in Cleveland, Ohio. Advanced Plumbing and Drain is the second business operated under the Kingsway Skilled Trades platform.
Advanced Plumbing and Drain is one of the top commercial plumbing services companies in the Cleveland, Ohio metropolitan service area. Founded in 1926 by Benjamin Fisco, Advanced Plumbing and Drain has been owned and operated by the Fisco family for nearly a century and has developed a well-earned reputation for quality, integrity, professionalism, and service.
Advanced Plumbing and Drain's customer base is split
The transaction closed on August 1, 2025. The purchase price included
Management will provide additional details about the acquisition during the company's second quarter 2025 earnings call. Rob Casper, President of Kingsway Skilled Trades, sourced and led the transaction for Kingsway.
Management Commentary
"I am excited to welcome Advanced Plumbing and Drain to the Kingsway Skilled Trades platform," said JT Fitzgerald, Kingsway's President and CEO. "Advanced Plumbing and Drain is a wonderful fit for our strategy, and I am confident that with Rob's leadership and Kingsway's financial backing, the future is bright for a business that has been a valuable member of the northeast Ohio community for almost a century."
"It is a tremendous honor to be entrusted with Advanced Plumbing and Drain by the Fisco family," said Rob Casper, President of Kingsway Skilled Trades. "I am committed to building on the company's reputation for quality work and uncompromising customer service, and am thrilled to help write the next chapter of the company's story."
"I am thrilled to partner with the Kingsway team, a collaboration I believe will drive remarkable growth and innovation," said Ernie Fisco, President of Advanced Plumbing and Drain. "Kingsway's expertise and vision align seamlessly with our commitment to delivering exceptional value to our customers."
About AAA Flexible Pipe Cleaning Corp
Advanced Plumbing and Drain is a trusted leader in plumbing services across Cleveland and Northeast Ohio, with decades of experience serving municipal, commercial, and residential clients. Known for its deep expertise in plumbing, waterproofing, and sewer cleaning and repair, Advanced Plumbing and Drain brings innovative solutions and state-of-the-art technology to every job. The company's licensed, bonded, and insured technicians are available 24/7, delivering reliable service and peace of mind to its customers.
About the Company
Kingsway Financial Services Inc. ("Kingsway") (NYSE: KFS) is the only publicly-traded US company employing the Search Fund model to acquire and build great businesses.
Kingsway owns and operates a collection of high-quality B2B and B2C services companies that are asset-light, growing, profitable, and that have recurring revenues. Kingsway seeks to compound long-term shareholder value on a per share basis via its decentralized management model, its talented team of operators, and its tax-advantaged corporate structure.
Forward-Looking Statements
This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Words such as "expects," "believes," "anticipates," "intends," "estimates," "seeks," and variations and similar words and expressions are intended to identify such forward-looking statements; however, the absence of any such words does not mean that a statement is a not a forward-looking statement. Such forward-looking statements relate to future events or future performance, but reflect Kingsway management's current beliefs, based on information currently available. A number of factors could cause actual events, performance, or results to differ materially from the events, performance, and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the section entitled "Risk Factors" in the Company's 2024 Annual Report on Form 10-K and subsequent Form 10-Qs and Form 8-Ks filed with the Securities and Exchange Commission. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Additional Information
Additional information about Kingsway, including a copy of its Annual Reports can be accessed on the EDGAR section of the U.S. Securities and Exchange Commission's website at , on the Canadian Securities Administrators' website at , or through the Company's website at .
For Investor Inquiries:
Hayden IR
James Carbonara
(646) 755-7412
[email protected]
For Company Inquiries:
Kingsway Financial Services Inc.
Kent Hansen, CFO
(312) 766-2163
[email protected]
SOURCE: Kingsway Financial Services, Inc.
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FAQ
What is the total acquisition cost for KFS's purchase of Advanced Plumbing and Drain?
What are Advanced Plumbing and Drain's key financial metrics?
How is the KFS acquisition payment structured?
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