July 24, 2007 // Franchising.com // Birmingham, Mich.– BELFOR Holdings Inc., the world's largest insurance restoration company with over $1 billion in annual sales, announced today that it has acquired DUCTZ INTERNATIONAL, LLC, a professional air duct cleaning and heating/ventilation/air conditioning (HVAC) restoration subsidiary of Ann Arbor, Mich.-based Service Brands International. The announcement was made by BELFOR CEO Sheldon Yellen.
DUCTZ, an industry leader in standards and processes for HVAC (heating, ventilation, and airconditioning) restoration and cleaning, will remain under its current management team, headed by president John Rotche.
BELFOR's relationship with DUCTZ began three years ago when the company first hired DUCTZ as subcontractors in various local and national insurance restoration projects, including work resulting from the 2005 hurricanes in Florida.
"BELFOR made this acquisition because we believe there is untapped potential in the need for services that improve indoor air quality," said BELFOR CFO Joseph Ciolino. "Most of DUCTZ's $15 million in annual sales is not related to BELFOR, which means there is a high ceiling for synergistic growth, as well as an increased number of franchises. DUCTZ has a significant number of franchise-owned operations nationally, but there are many, many locations available for expansion, which can be supported by the 72 BELFOR offices already operating in the United States and Canada."
"The utility contractor industry, which includes the HVAC restoration business, nationally is a $75 billion industry," Ciolino continued. "As this kind of work continues to become increasingly recognized for its role in supporting good health, it's an industry we feel will continue to expand. DUCTZ is a national company with a growing franchise network and the expertise required for even faster growth. We feel this is an opportunity to better service our customers and grow our business."
DUCTZ president John Rotche said, "We see this as a mutually beneficial transaction that also presents significant growth opportunities to DUCTZ. When you put the BELFOR footprint over the DUCTZ footprint, the chance each entity has to help the other is obvious. In addition,
BELFOR's history of supporting successful entrepreneurs and creating a service oriented network around the world fits with DUCTZ's plans to grow its network globally."
About DUCTZ, LLC.
DUCTZ, LLC. was previously a member of the Service Brands International families of companies which includes MOLLY MAID, Mr. Handyman, and 1-800-DryClean. DUCTZ' national headquarters is located in Ann Arbor, Michigan. For more information about DUCTZ go to www.ductz.com.
About BELFOR Holdings Inc. BELFOR Holdings Inc. is the world's largest insurance restoration company. Insurance-related BELFOR customers include brokers, agencies, loss adjusters, consultants and claims departments. The firm has 3,350 employees in 160 offices in 27 countries with headquarters in Birmingham, Michigan. For more information about BELFOR go to www.belfor.com.
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