October 1, 2018, this company completed its spin-off from ServiceMaster.
Frontdoor, Inc. (FTDR)
From Research & Portfolio Evaluation, Inc.
Frontdoor, Inc. (FTDR) is the industry-leading provider of home service plans. The company began trading yesterday as an independent publicly-traded company listed on the Nasdaq Global Select Market exchange under the symbol “FTDR” after completing its spin-off from ServiceMaster Global Holdings, Inc. (SERV).
Frontdoor is the parent company of American Home Shield, which founded the home service plan industry more than 45 years ago and today, is the largest provider in the nation. Frontdoor also provides service through the HSA, OneGuard and Landmark home service plan brands. The company responds to more than four million service requests annually from customers in need of repairs to covered appliances and components of major home systems, such as heating and air conditioning, plumbing and electrical systems. Service is provided through a team of approximately 2,000 employees and a nationwide network of more than 15,000 pre-qualified independent contractor firms that employ over 45,000 technicians. Frontdoor’s customizable home service plans help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. In its efforts to respond to over four million service requests annually, Frontdoor answers one request every eight seconds.
Under the terms of the previously-announced separation agreements, ServiceMaster shareholders received one share of Frontdoor common stock yesterday for every two shares of ServiceMaster common stock they held as of the close of business on the record date for the distribution, September 14, 2018. ServiceMaster retained approximately 20% of Frontdoor’s common stock.
While no one wishes for the devastation of hurricanes like “Florence” and last year’s “Irma”, at least Service Master is and Frontdoor are there to provide residential and commercial restoration services. FTDR is the newest addition to BAM’s Thematic Growth portfolio. This spin-off adds extra value to an already profitable investment in SERV.
John J. Gardner, Equity Research & Portfolio Evaluation, Inc., www.erpeinc.com, 925-216-
4968, October 2, 2018