How did 360 Painting fund the Rooterman acquisition?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The purchase price was allocated as follows:
| Current assets | $ 24,145 |
|---|---|
| Property and equipment | 112,624 |
| Other assets | 2,500 |
| Assets acquired | 139,269 |
| Liabilities assumed | (139,268) |
| Purchase price | $ 1 |
Rooterman
In January 2022, the Company entered into an asset purchase agreement to acquire substantially all of the assets of A Corp, Inc. for an aggregate net purchase price of $3,900,000. The transaction was funded by $3,950,000 in draws on the existing term loan facility and $42,267 in cash on hand. Rooterman is a sewer and drain maintenance and repair franchising company and has been acquired to allow for the expansion of the Company's presence within its home service
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting's parent company, Premium Service Brands, LLC, acquired Rooterman in January 2022. The acquisition was an asset purchase agreement to acquire substantially all of the assets of A Corp, Inc. for an aggregate net purchase price of $3,900,000.
The FDD states that the transaction was funded by $3,950,000 in draws on an existing term loan facility and $42,267 in cash on hand. Rooterman is a sewer and drain maintenance and repair franchising company. Premium Service Brands acquired Rooterman to expand its presence within its home services franchising platform.
As a result of the transaction, Premium Service Brands incurred and expensed transaction costs of $33,017, which are included in transaction costs on the consolidated statements of operations.