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CHICAGO - Kingsway Financial Services Inc. (NYSE:KFS), a $201 million market cap company with annual revenues of $108.6 million, announced the acquisition of M.L.C. Plumbing LLC, doing business as Bud’s Plumbing, a service and repair plumbing company with over a century of operation. The transaction, valued at $5.0 million plus additional costs, was funded with cash on hand and a $1.25 million seller note. According to InvestingPro data, Kingsway maintains a healthy current ratio of 1.33, indicating solid short-term liquidity for such strategic acquisitions.
Bud’s Plumbing, established in 1920, has served the Evansville, Indiana community, offering a range of plumbing services to residential and commercial clients. The company’s reputation for honest and reliable service has been recognized in the Tri-State area, where it has been voted "Best of the Best" for three years running. For investors seeking deeper insights into Kingsway’s acquisition strategy and financial outlook, InvestingPro offers exclusive analysis and 6 additional ProTips, along with comprehensive research reports covering 1,400+ US stocks.
The acquisition is the latest under Kingsway’s Kingsway Search Xcelerator (KSX) platform, aimed at expanding their skilled trades portfolio. Rob Casper, Kingsway’s Operator-in-Residence, will assume the CEO role at Kingsway Skilled Trades, while Mark Corn will continue as President of Bud’s Plumbing during a one-year transition period.
Kingsway’s President and CEO, J.T. Fitzgerald, expressed that the acquisition aligns well with their Xcelerator portfolio and that they plan to maintain the high standards of service that Bud’s Plumbing’s customers expect. Fitzgerald highlighted the company’s century-long dedication to quality workmanship.
Rob Casper shared his enthusiasm about joining Bud’s Plumbing, citing the team’s longstanding commitment to quality service in Evansville. Mark Corn also welcomed the partnership with Kingsway, anticipating a successful future and continued excellent customer service.
The deal involves the purchase of all issued and outstanding membership interests in M.L.C Plumbing, LLC, with legal counsel provided by Holland & Knight LLP. A conference call to discuss the transaction is scheduled for Tuesday, March 25, 2025, at 5:30 p.m. ET.
Kingsway is a holding company with subsidiaries primarily in the business services and extended warranty industries, with shares listed on the New York Stock Exchange. This acquisition adds approximately $6.0 million in annual unaudited revenue and $0.8 million in annual unaudited adjusted EBITDA to Kingsway’s portfolio.
The information in this article is based on a press release statement.
In other recent news, Kingsway Financial Services Inc. has successfully raised over $6 million through a private placement of its newly created Class C Preferred Stock. This financial maneuver involved the sale of 240,000 shares at $25 per share, with the initial transaction raising $4.4 million between February 12 and February 14. The company continued this effort by selling an additional 63,244 shares, generating $1,581,100 in proceeds. This strategic move aims to strengthen Kingsway’s capital structure and support potential growth initiatives. The Class C Preferred Stock, which is convertible into common stock, offers an 8% annual dividend, increasing to 18% if unpaid for more than two quarters. Kingsway has committed to redeeming all outstanding shares by February 12, 2032, and has structured the stock to be senior to other capital stock regarding dividends and liquidation preference. The private placement was conducted without registration under the Securities Act, relying on exemptions, and has now concluded.
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