Increases Frontdoor’s customer base, revenue
and earnings
Opens new sales channel for home warranties
Diversifies portfolio into an adjacent and
growing category
Frontdoor, Inc. (NASDAQ: FTDR), the nation’s leading provider of
home warranties, today announced it has completed the acquisition
of 2-10 Home Buyers Warranty following receipt of all regulatory
approvals and satisfaction of all other closing conditions.
“Frontdoor, Inc. now owns a great brand and highly complementary
business that aligns very well with our strategic growth
priorities,” said Frontdoor, Inc. Chairman and CEO Bill Cobb. “2-10
immediately grows our customer base, revenue and earnings. 2-10’s
New Home Structural Warranty also diversifies Frontdoor’s product
portfolio and customer base, opening up cross-selling opportunities
for our home warranties and on-demand services.”
Frontdoor purchased 2-10 Home Buyers Warranty in an all-cash
transaction for $585 million, subject to certain customary
adjustments based on, among other things, the amount of cash, debt,
transaction expenses, working capital and regulatory capital in the
business as of the closing.
In addition, the company announced that it has successfully
priced its previously announced $1.47 billion credit facility,
which is comprised of a $418 million Term Loan A, an $800 million
Term Loan B, and a $250 million revolving credit facility.
Proceeds have been used to retire previous Term Loan A and Term
Loan B debt with maturity dates of 2026 and 2028, respectively, as
well as provide funding for the 2-10 Home Buyers Warranty
acquisition. Remaining funds will be used for share repurchases
and/or general corporate purposes.
Advisors
In connection with the 2-10 Home Buyers Warranty acquisition,
BofA Securities, Inc. is acting as financial advisor and Simpson
Thacher & Bartlett LLP is acting as legal counsel to Frontdoor,
Inc., and Evercore is acting as financial advisor and Ropes &
Gray is acting as legal counsel to 2-10 Home Buyers Warranty.
About Frontdoor, Inc.
Frontdoor is reimagining how homeowners maintain and repair
their most valuable asset – their home. As the parent company of
two leading brands, we bring over 50 years of experience in
providing our members with comprehensive options to protect their
homes from costly and unexpected breakdowns through our extensive
network of pre-qualified professional contractors. American Home
Shield, the category leader in home service plans with
approximately two million members, gives homeowners budget
protection and convenience, covering up to 23 essential home
systems and appliances. Frontdoor is a cutting edge, one-stop app
for home repair and maintenance. Enabled by our Streem technology,
the app empowers homeowners by connecting them in real time through
video chat with pre-qualified experts to diagnose and solve their
problems. The Frontdoor app also offers homeowners a range of other
benefits including DIY tips, discounts and more. For more
information about American Home Shield and Frontdoor, please visit
frontdoorhome.com.
About 2-10 HBW
For over 40 years, 2-10 Home Buyers Warranty has been helping
people protect one of life’s biggest investments with new
construction structural warranties and systems and appliances
coverage for new and existing homes. Founded and based in Colorado,
2-10 Home Buyers Warranty has covered over 5.8 million homes and
partners with thousands of the nation’s finest real estate
professionals, home builders and service contractors to help home
buyers, sellers and owners to mitigate risk, save money and have
protection from the unexpected. For more information, visit
www.2-10.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including, in particular, projected future performance and any
statements about Frontdoor’s plans, strategies and prospects as
well as statements with respect to the proposed acquisition of 2-10
Home Buyers Warranty (the “Acquisition”), the Acquisition’s effect
on our business and timing of such effects, and the expected timing
of closing. Forward-looking statements can be identified by the use
of forward-looking terms such as “believe,” “expect,” “estimate,”
“could,” “should,” “intend,” “may,” “plan,” “seek,” “anticipate,”
“project,” “will,” “shall,” “would,” “aim,” or other comparable
terms. These forward-looking statements are subject to known and
unknown risks and uncertainties, many of which may be beyond our
control. Such risks and uncertainties include, but are not limited
to: risks related to the proposed Acquisition, including risks that
the Acquisition may not achieve its intended results; changes in
macroeconomic conditions, including inflation and global supply
chain challenges, especially as they may affect existing home
sales, interest rates, consumer confidence or labor availability;
the success of our business strategies; the ability of our
marketing efforts to be successful or cost-effective; our
dependence on our real estate and direct-to-consumer customer
acquisition channels and our renewal channel; changes in the source
and intensity of competition in our market; our ability to attract,
retain and maintain positive relations with third-party contractors
and vendors; increases in parts, appliance and home system prices,
and other operating costs; our ability to attract and retain
qualified key employees and labor availability in our customer
service operations; our dependence on third-party vendors,
including business process outsourcers, and third-party component
suppliers; cybersecurity breaches, disruptions or failures in our
technology systems; our ability to protect the security of personal
information about our customers; lawsuits, enforcement actions and
other claims by third parties or governmental authorities; evolving
corporate governance and disclosure regulations and expectations
related to environmental, social and governance matters; physical
effects of climate change, including adverse weather conditions and
Acts of God, along with the increased focus on sustainability;
increases in tariffs or changes to import/export regulations; our
ability to protect our intellectual property and other material
proprietary rights; negative reputational and financial impacts
resulting from acquisitions or strategic transactions; requirement
to recognize impairment charges; third-party use of our trademarks
as search engine keywords to direct our potential customers to
their own websites; inappropriate use of social media by us or
other parties to harm our reputation; special risks applicable to
operations outside the United States by us or our business process
outsource providers; a return on investment in our common stock is
dependent on appreciation in the price; restrictions in our
certificate of incorporation related to an acquisition of us or to
our lawsuits against us or our directors or officers; the effects
of our significant indebtedness; increases in interest rates
increasing the cost of servicing our indebtedness; increased
borrowing costs due to lowering or withdrawal of the credit
ratings, outlook or watch assigned to us, our debt securities or
our credit facilities; and our ability to generate significant cash
needed to fund our operations and service our debt. We caution you
that forward-looking statements are not guarantees of future
performance or outcomes and that actual performance and outcomes,
including, without limitation, our actual results of operations,
financial condition and liquidity, and the development of new
markets or market segments in which we operate, may differ
materially from those made in or suggested by the forward-looking
statements contained in this news release. For a discussion of
other important factors that could cause Frontdoor’s results to
differ materially from those expressed in, or implied by, the
forward-looking statements included in this document, refer to the
risks and uncertainties detailed from time to time in Frontdoor’s
periodic reports filed with the SEC, including the disclosure
contained in Item 1A. Risk Factors in our 2023 Annual Report on
Form 10-K filed with the SEC, as such factors may be updated from
time to time in Frontdoor’s periodic filings with the SEC. Except
as required by law, Frontdoor does not undertake any obligation to
update or revise the forward-looking statements to reflect new
information or events or circumstances that occur after the date of
this news release or to reflect the occurrence of unanticipated
events or otherwise. Readers are advised to review Frontdoor’s
filings with the SEC, which are available from the SEC’s EDGAR
database at sec.gov, and via Frontdoor’s website at
frontdoorhome.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241219129865/en/
Investor Relations Matt Davis 901-701-5199
IR@frontdoorhome.com Media Tom Collins 901-701-5198
MediaCenter@frontdoorhome.com
Frontdoor (NASDAQ:FTDR)
과거 데이터 주식 차트
부터 12월(12) 2024 으로 1월(1) 2025
Frontdoor (NASDAQ:FTDR)
과거 데이터 주식 차트
부터 1월(1) 2024 으로 1월(1) 2025
