Kingsway Announces Acquisition of Southside Plumbing
Kingsway Financial Services (NYSE:KFS) has announced the acquisition of Southside Plumbing, a leading commercial and residential plumbing services provider in Omaha, Nebraska, for a maximum purchase price of $6.75 million. The deal includes $4.0 million cash at close, a $0.5 million seller note, and a potential earn-out of up to $1.125 million.
Southside Plumbing generates $4.0 million in pro-forma annual revenue and $0.9 million in pro-forma adjusted EBITDA. The company's customer base is 70% commercial and 30% residential, with approximately 70% of trailing 12-month revenues being recurring or reoccurring. The business has shown strong growth of about 20% per year in its service and repair segment.
To support growth, Kingsway Skilled Trades has secured a new credit facility with Newburyport Bank, featuring a fixed-rate commercial term loan at 7.5% with a 7-year amortization schedule, plus access to revolving and equipment credit lines.
Kingsway Financial Services (NYSE:KFS) ha annunciato l'acquisizione di Southside Plumbing, principale fornitore di servizi idraulici commerciali e residenziali a Omaha, Nebraska, per un prezzo massimo di acquisto di 6,75 milioni di dollari. L'operazione prevede 4,0 milioni di dollari in contanti al closing, una cambiale del venditore di 0,5 milioni di dollari e un potenziale earn-out fino a 1,125 milioni di dollari.
Southside Plumbing realizza 4,0 milioni di dollari di ricavi pro-forma annui e 0,9 milioni di dollari di EBITDA rettificato pro-forma. La clientela 猫 composta per il 70% da clienti commerciali e per il 30% da clienti residenziali, con circa il 70% dei ricavi degli ultimi 12 mesi ricorrenti o ripetuti. L'attivit脿 ha mostrato una forte crescita, di circa il 20% annuo, nel segmento di assistenza e riparazione.
Per sostenere la crescita, Kingsway Skilled Trades ha ottenuto una nuova linea di credito con Newburyport Bank, che comprende un prestito commerciale a tasso fisso del 7,5% con ammortamento a 7 anni e accesso a linee di credito revolving e per attrezzature.
Kingsway Financial Services (NYSE:KFS) ha anunciado la adquisici贸n de Southside Plumbing, un destacado proveedor de servicios de fontaner铆a comerciales y residenciales en Omaha, Nebraska, por un precio m谩ximo de compra de 6,75 millones de d贸lares. El acuerdo incluye 4,0 millones de d贸lares en efectivo al cierre, un pagar茅 del vendedor por 0,5 millones de d贸lares y un posible earn-out de hasta 1,125 millones de d贸lares.
Southside Plumbing genera 4,0 millones de d贸lares en ingresos anuales pro forma y 0,9 millones de d贸lares en EBITDA ajustado pro forma. La base de clientes es 70% comercial y 30% residencial, con aproximadamente el 70% de los ingresos de los 煤ltimos 12 meses siendo recurrentes o repetidos. El negocio ha mostrado un fuerte crecimiento, de alrededor del 20% anual, en su segmento de servicio y reparaci贸n.
Para apoyar el crecimiento, Kingsway Skilled Trades ha asegurado una nueva l铆nea de cr茅dito con Newburyport Bank, que incluye un pr茅stamo comercial a tasa fija del 7,5% con amortizaci贸n a 7 a帽os, adem谩s de acceso a l铆neas de cr茅dito revolving y para equipos.
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Kingsway Financial Services (NYSE:KFS) a annonc茅 l'acquisition de Southside Plumbing, un acteur majeur des services de plomberie commerciale et r茅sidentielle 脿 Omaha, Nebraska, pour un prix d'achat maximum de 6,75 millions de dollars. L'op茅ration comprend 4,0 millions de dollars en num茅raire 脿 la cl么ture, un billet vendeur de 0,5 million de dollars et un earn-out potentiel pouvant atteindre 1,125 million de dollars.
Southside Plumbing g茅n猫re 4,0 millions de dollars de chiffre d'affaires annuel pro forma et 0,9 million de dollars d'EBITDA ajust茅 pro forma. La client猫le est compos茅e de 70% commerciale et 30% r茅sidentielle, environ 70% des revenus des 12 derniers mois 茅tant r茅currents ou r茅p茅t茅s. L'activit茅 a montr茅 une forte croissance d'environ 20% par an dans son segment de service et r茅paration.
Pour soutenir la croissance, Kingsway Skilled Trades a obtenu une nouvelle facilit茅 de cr茅dit aupr猫s de Newburyport Bank, comprenant un pr锚t commercial 脿 taux fixe de 7,5% avec un amortissement sur 7 ans, ainsi que l'acc猫s 脿 des lignes de cr茅dit renouvelables et d茅di茅es 脿 l'茅quipement.
Kingsway Financial Services (NYSE:KFS) hat die 脺bernahme von Southside Plumbing, einem f眉hrenden Anbieter von gewerblichen und privaten Sanit盲rdienstleistungen in Omaha, Nebraska, f眉r einen maximalen Kaufpreis von 6,75 Millionen US-Dollar angek眉ndigt. Der Deal umfasst 4,0 Millionen US-Dollar Barzahlung bei Closing, eine Verk盲uferdarlehensforderung 眉ber 0,5 Millionen US-Dollar und ein potenzielles Earn-out von bis zu 1,125 Millionen US-Dollar.
Southside Plumbing erwirtschaftet 4,0 Millionen US-Dollar pro Forma Jahresumsatz und 0,9 Millionen US-Dollar pro Forma bereinigtes EBITDA. Die Kundenbasis ist zu 70% gewerblich und zu 30% privat, wobei etwa 70% der Ums盲tze der letzten 12 Monate wiederkehrend sind. Das Gesch盲ft verzeichnet im Service- und Reparatursegment ein starkes Wachstum von rund 20% pro Jahr.
Zur Unterst眉tzung des Wachstums hat Kingsway Skilled Trades eine neue Kreditlinie bei der Newburyport Bank gesichert, die ein festverzinsliches Gesch盲ftsdarlehen zu 7,5% mit 7-j盲hriger Tilgung sowie Zugang zu revolvierenden und equipmentbezogenen Kreditlinien umfasst.
- Strong recurring revenue base with 70% of trailing 12-month revenues being recurring or reoccurring
- Impressive growth profile of +20% per year in service and repair business
- Strategic expansion of Kingsway Skilled Trades platform with third operating business
- Secured favorable financing with 7.5% fixed-rate term loan and additional credit lines
- Retention of current leadership with Josh Gruhn remaining as President
- Significant upfront cash investment of $4.0 million required
- Earn-out requires substantial EBITDA growth of +75% for full payout
- Additional debt burden through new credit facility
Insights
Kingsway's acquisition of Southside Plumbing strengthens its skilled trades platform with a recurring revenue business at reasonable valuation.
Kingsway Financial Services has completed its 12th Search Xcelerator acquisition with Southside Plumbing, representing a strategic expansion of its Skilled Trades platform. The deal structure reveals careful capital allocation -
The maximum purchase price of
The acquisition exhibits several positive characteristics:
- Asset-light business model with minimal capital requirements
- Strong market position in Omaha metropolitan area
- Impressive
20% annual growth in service and repair - Balanced customer mix (
70% commercial,30% residential) - Founder retention as President with economic incentives aligned
The company has simultaneously secured a new credit facility with Newburyport Bank at a
Kingsway Search Xcelerator's 12th Acquisition
Asset-light plumbing services business with recurring revenues and leading market position
Purchase price of
$5.62 5 million, plus a potential earn-out of up to$1.12 5 million, for a total maximum purchase price of$6.75 million Unaudited pro-forma annual revenue of
$4.0 million Unaudited pro-forma annual adjusted EBITDA of
$0.9 million New credit facility to support growth at Kingsway Skilled Trades
CHICAGO, ILLINOIS / / August 18, 2025 / (NYSE:KFS) Kingsway Financial Services Inc. ("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 Southside Plumbing, a leading provider of commercial and residential plumbing services located in Omaha, Nebraska. Southside Plumbing is the third business operated under the Kingsway Skilled Trades platform.
Southside Plumbing is one of the top commercial plumbing services company in the Omaha, Nebraska metropolitan service area. With decades of commitment to its community, Southside Plumbing has built an impressive reputation for both quality and reliability.
Southside Plumbing's customer base is split
The transaction closed on August 14, 2025. The purchase price included
Rob Casper, President of Kingsway Skilled Trades, sourced and led the transaction for Kingsway.
Management Commentary
"I am thrilled to welcome Southside Plumbing as the third operating business under the Kingsway Skilled Trades platform," said JT Fitzgerald, Kingsway's President and CEO. "The Southside Plumbing team has an exceptional reputation in its market for quality and service, which has led to consistently robust growth in its service and repair business. Kingsway is excited to partner with Josh Gruhn, who will remain with the company as President and maintain an economic interest, and to uphold Southside Plumbing's legacy of excellence and reliability."
"Josh and his team at Southside Plumbing have built an outstanding plumbing business in the growing Omaha market," said Rob Casper, President of Kingsway Skilled Trades. "I am proud to partner with such a quality person and operator to continue growing Southside Plumbing in the years ahead."
"It's an exciting day for Southside Plumbing," said Josh Gruhn, Founder and President of Southside Plumbing. "Rob and his team at Kingsway are an ideal partner as we look to take Southside Plumbing to the next level. I am excited to help the business thrive in this new chapter."
New Credit Facility
In connection with today's announcement, Kingsway Skilled Trades has entered into a financing arrangement with Newburyport Five Cents Savings Bank ("Newburyport Bank") to support the growth of the Kingsway Skilled Trades platform.
The financing arrangement includes senior debt in the form of a commercial term loan at a fixed rate of
Further detail regarding the terms of the financing arrangement will be disclosed on a Form 8-K to be filed with the Securities and Exchange Commission.
About Southside Plumbing
Southside Plumbing is a leading provider of commercial and residential plumbing services in the Omaha, Nebraska metro area and surrounding communities. Founded by Josh Gruhn, a second-generation master plumber, the company is built on a legacy of hard work and a deep-rooted commitment to delivering reliable, high-quality plumbing services. Southside Plumbing is dedicated to providing unmatched customer care while ensuring the safety and comfort of the homes and businesses it serves.
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
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