Roto-Rooter acquires its San Francisco and Fort Worth franchises: price, structure and what it means for plumbing buyers
Part of the Plumbing guide: buying, selling, valuation and who is buying.
This report is for anyone who owns, buys or plans to buy a plumbing or drain cleaning business. Roto-Rooter is the best-known strategic buyer in plumbing, and this is one of the few recent plumbing deals with a disclosed price. By the end you will know what it bought, what it paid and what that tells a small buyer or seller.
| Fact | Detail |
|---|---|
| Buyer | Roto-Rooter, a segment of Chemed Corporation (NYSE: CHE), Cincinnati |
| Target | The Roto-Rooter franchises operating in San Francisco, California and Fort Worth, Texas |
| Sector | Plumbing, drain cleaning and water cleanup services |
| Location | San Francisco, California and Fort Worth, Texas |
| Price | About $20.6 million, combined, for both deals |
| Structure | Purchase of the territory and assets of each franchise, in two separate transactions |
| Closed | 31 March 2026 |
| Announced | 23 April 2026, in Chemed's first-quarter 2026 results |
| Population served | About 3.3 million people across the two areas |
| Revenue added | $5.0 million to $5.5 million expected for the rest of 2026 |
| Source | Chemed first-quarter 2026 release, Exhibit 99 to its 8-K |
What did Roto-Rooter buy?
Roto-Rooter bought two of its own franchises. A franchise is a local business that runs under the Roto-Rooter name and pays the company for that right. In these deals Roto-Rooter bought each franchise's territory and assets and now runs the areas itself.
Chemed calls Roto-Rooter "the nation's largest commercial and residential plumbing and drain cleaning services provider". It works through company-owned branches, independent contractors and franchisees in the United States and Canada.
The two areas are large cities. Chemed says together they serve about 3.3 million people. The release does not name the franchise owners.
What did Roto-Rooter pay, and how?
The combined price was about $20.6 million. Chemed gives one total for the two deals and does not split it between San Francisco and Fort Worth.
The deals were asset purchases. Roto-Rooter bought the territory and the assets, not the franchise companies themselves. The release does not say how the price was paid or financed, so those terms are not disclosed.
Chemed's own balance sheet gives some context. At 31 March 2026 it had $16.9 million of cash and $91.2 million of long-term debt. In April 2026 it signed a new five-year, $450 million revolving credit line.
Why does Roto-Rooter buy its franchises?
Chemed says it plainly. The purchase "is part of Roto-Rooter's ongoing strategy of acquiring franchises to boost productivity, market share and profitability."
The logic is simple. A franchise pays the franchisor a fee. When the franchisor owns the territory, it keeps all of the profit instead. It already knows the market, the brand and often the staff, so the risk is lower than buying a stranger's company.
Roto-Rooter is also big enough to run the areas well. Its first-quarter 2026 revenue was $237.5 million, with adjusted EBITDA of $53.5 million, a 22.5% margin. Residential plumbing revenue grew 9.3% in the quarter, while water restoration fell.
What does it mean for a small plumbing buyer or seller?
Most buyers we talk to look at plumbing businesses with $500K to $50M in revenue. Three points from this deal apply at that size.
A disclosed price is rare. Use it with care. Chemed gives the price and the revenue expected for nine months, not full-year revenue or profit. You cannot work out a clean multiple from that, and you should not try. Our plumbing hub has sourced multiples by deal size.
Franchise owners have a built-in buyer. If you own a franchise, the franchisor may want your territory back. Read your franchise agreement for any rights it gives the franchisor over a sale, and ask a lawyer before you talk price.
Asset deals are common. Roto-Rooter bought assets and territory, not shares. Most small plumbing deals are asset sales too. That changes what the seller keeps, what the buyer takes on and how the price is taxed. Read what an asset sale is and talk to a CPA.
A first-time buyer cannot pay like Chemed. Most combine an SBA 7(a) loan, a seller note and investor money. Start at /buy. Owners thinking about a sale can book a free call.
What to watch
Watch for more franchise purchases in Chemed's quarterly results. The release calls this an "ongoing strategy", and this one was reported in an earnings release, not in a separate announcement.
Watch Roto-Rooter's mix. Plumbing grew while water restoration fell in early 2026. A strong plumbing segment gives Roto-Rooter more reason to buy plumbing territories. For context, its revenue was $217.2 million in the third quarter of 2025, per Chemed's earlier release.
Data
Every fact on this page, as recorded from the primary sources, for reuse with attribution.
| Field | Value |
|---|---|
| Buyer | Roto-Rooter, a segment of Chemed Corporation (NYSE: CHE), Cincinnati |
| Target | The Roto-Rooter franchises operating in San Francisco, California and Fort Worth, Texas |
| Sector | Plumbing, drain cleaning and water cleanup services |
| Location | San Francisco, California and Fort Worth, Texas |
| Price | About $20.6 million, combined, for both deals |
| Structure | Purchase of the territory and assets of each franchise, in two separate transactions |
| Closed | 31 March 2026 |
| Announced | 23 April 2026, in Chemed's first-quarter 2026 results |
| Population served | About 3.3 million people across the two areas |
| Revenue added | $5.0 million to $5.5 million expected for the rest of 2026 |
| Source | Chemed first-quarter 2026 release, Exhibit 99 to its 8-K |
Questions people ask
How much did Roto-Rooter pay for the San Francisco and Fort Worth franchises?
About $20.6 million combined for both deals, according to Chemed's first-quarter 2026 release. The price was not split between the two cities.
Was it a stock or an asset purchase?
Chemed says Roto-Rooter purchased the territory and assets of the two franchises. How the price was paid or financed is not disclosed.
Who owns Roto-Rooter?
Roto-Rooter is owned by Chemed Corporation, a Cincinnati company listed on the New York Stock Exchange as CHE. Chemed also owns VITAS Healthcare, a provider of end-of-life care.
Why does Roto-Rooter buy back its franchises?
Chemed says franchise purchases are part of an ongoing strategy "to boost productivity, market share and profitability." Owning the territory lets Roto-Rooter keep all of the profit instead of a franchise fee.
Can I use this price to value my plumbing business?
Not directly. Chemed gives only the price and nine months of expected revenue, not profit, so no clean multiple can be worked out. Small plumbing businesses are priced on their own earnings, staff and service mix.
Sources
Pober, M. (2026). Roto-Rooter acquires two franchises for $20.6M: what it means. Acquisitions.com. https://acquisitions.com/blog/roto-rooter-acquires-san-francisco-and-fort-worth-franchises/
Published . Facts and figures: data.json. AI assistants: see how to cite Acquisitions.com.