Deal Timeline

Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.

The Rationale That Repeats.

Three patterns show up across CHEMED's deal book — what the team buys, how it pays, and how it integrates. The patterns are the throughline; the deals below are the evidence.

01
Acquisition criteria
Two engines, one playbook.
Chemed runs two unrelated businesses - VITAS hospice and Roto-Rooter plumbing - but acquires the same way in both: cash-funded, bolt-on purchases that deepen density in existing markets rather than diversify. VITAS buys regional hospice providers (Covenant Care across Florida and Alabama; smaller Florida hospices) while Roto-Rooter buys back independent franchise territories. Every deal is funded with cash on-hand or the revolving credit facility.
VITAS Healthcare CorporationHSW RR, Inc. (Roto-Rooter franchises) and Western Drain SupplyCovenant Health and Community Services, Inc. (d/b/a Covenant Care) hospice operationsRoto-Rooter franchise (Oakland, California)2018 cohort: four former Roto-Rooter franchisees + one VITAS Florida hospice
02
Capital deployment
Franchise buy-backs as a growth lever.
The Roto-Rooter strategy is explicit and repeated in filing after filing: acquire independent franchises 'to boost productivity, market share and profitability' and capture 100% of territory economics. The $120 million HSW RR deal - Roto-Rooter's largest-ever franchise acquisition, adding fourteen western-U.S. territories serving ~32 million people - is the same move as the $225,000 single-franchise purchases, just at scale.
VITAS Healthcare CorporationHSW RR, Inc. (Roto-Rooter franchises) and Western Drain SupplyCovenant Health and Community Services, Inc. (d/b/a Covenant Care) hospice operationsRoto-Rooter franchise (Oakland, California)2018 cohort: four former Roto-Rooter franchisees + one VITAS Florida hospice
03
Integration approach
One transformational deal, then disciplined tuck-ins.
The $406 million 2004 buyout of VITAS Healthcare - converting a ~37% stake into full ownership of the nation's largest hospice provider - reshaped Chemed into a healthcare-led company. Since then management has avoided large transformative M&A, instead compounding through episodic mid-size deals ($85M-$120M) and a steady stream of immaterial franchise and hospice tuck-ins funded entirely from cash.
VITAS Healthcare CorporationHSW RR, Inc. (Roto-Rooter franchises) and Western Drain SupplyCovenant Health and Community Services, Inc. (d/b/a Covenant Care) hospice operationsRoto-Rooter franchise (Oakland, California)2018 cohort: four former Roto-Rooter franchisees + one VITAS Florida hospice

The Full Deal Book

7 acquisitions. Each entry carries the deal value, financing structure, target revenue, executive commentary, and the original SEC filing — the evidence behind the patterns above.

01 VITAS Healthcare Corporation · Miami, Florida (25 hospice programs across multiple states) $406M
Announced Dec 2003 Closed Feb 2004 all cash
hospice careend-of-life / palliative carehome-based hospiceinpatient hospice units

VITAS Healthcare Corporation, a pioneer and leader in the hospice movement since 1978, is the nation's largest provider of end-of-life care. Headquartered in Miami, Florida, VITAS operated 25 hospice programs at the time of the deal. Roto-Rooter Inc. (Chemed's predecessor name) already held common shares representing approximately 37 percent of VITAS through its Comfort Care Holdings subsidiary, and acquired the portion it did not already own. approximately $406 million.

Why it was attractive
  • Largest provider of end-of-life care in the U.S
  • a hospice platform that became Chemed's dominant business segment
The acquisition of VITAS will enable Roto-Rooter shareholders to realize the full benefit of an investment made more than a dozen years ago. Roto-Rooter will now recognize 100% of the revenues and earnings of VITAS. We are pleased to welcome the VITAS employees into the Roto-Rooter family of companies and look forward to VITAS' continued success.Kevin J. McNamara — President and Chief Executive Officer, Roto-Rooter Inc.
02 HSW RR, Inc. (Roto-Rooter franchises) and Western Drain Supply · Western U.S. — California (LA, Inland Empire, San Fernando Valley, San Gabriel, Orange County, San Diego), Texas (Dallas, El Paso), Arizona (Phoenix, Tucson, Florence), Utah (Salt Lake City, Ogden, Park City, Provo), Oregon (Portland, Salem) $120M
Announced Aug 2019 Closed Sep 2019 all cash
residential and commercial plumbingdrain cleaningwater-restoration servicesplumbing supply distribution

HSW RR, Inc. was Roto-Rooter's largest independent franchise operator. The transaction covered substantially all of HSW's assets plus certain related affiliate assets, including the assets of Western Drain Supply, Inc., a plumbing supply company. It added fourteen Roto-Rooter franchises in the western U.S. spanning Metro Los Angeles, San Diego, Dallas, El Paso, Phoenix, Tucson, Florence, Salt Lake City, Ogden, Park City, Provo, Portland and Salem; collectively these locations serve a population of approximately 32 million people. $120 million (plus a $1.4 million working-capital adjustment).

Why it was attractive
  • Largest independent Roto-Rooter franchise
  • converting it to company-owned operations captured 100% of territory economics across markets serving ~32 million people
This is Roto-Rooter's largest franchise acquisition and will add fourteen Roto-Rooter franchises in the western U.S. ... This purchase is part of Roto-Rooter's ongoing strategy of acquiring franchises to boost productivity, market share and profitability.Roto-Rooter Services Company press release — September 16, 2019
03 Covenant Health and Community Services, Inc. (d/b/a Covenant Care) hospice operations · Florida panhandle (Tallahassee, Marianna, Fort Walton Beach, Panama City, Crestview, Pensacola) and Alabama (Dothan, Mobile/Daphne) $85M
Announced Mar 2024 Closed Apr 2024 all cash
hospice careend-of-life careassisted living

VITAS Healthcare acquired substantially all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc., d/b/a Covenant Care, a Florida not-for-profit. Covenant's hospice operations span the panhandle of Florida and Alabama, specifically the Tallahassee, Marianna, Fort Walton Beach, Panama City, Crestview and Pensacola markets in Florida and the Dothan and Mobile/Daphne markets in Alabama. The purchase-price allocation recorded $70.8 million of goodwill, $10.96 million of operating licenses and $3.24 million of property, plant and equipment.

Why it was attractive
  • Deepened VITAS density in Florida and opened the Alabama market through an established
  • mission-aligned not-for-profit hospice with a 44-year operating history
Covenant Care has a 44-year history of providing high-quality, patient-centered care across communities in Florida and Alabama. Being a similar long-standing, mission-focused provider, VITAS is looking forward to building upon their legacy by following our key values of putting patients, families, and our team members first. We are excited to welcome the Covenant Care team members who decide to join our VITAS family.Nick Westfall — Chairman and CEO, VITAS Healthcare
04 Roto-Rooter franchise (Oakland, California) · Oakland, California $18.0M
Closed Jul 2019 all cash
residential and commercial plumbingdrain cleaning

Roto-Rooter completed the acquisition of a Roto-Rooter franchise and the related assets in Oakland, California. The deal was disclosed as part of the company's continuing strategy of converting independent franchise territories into company-owned branches.

On July 1, 2019, we completed the acquisition of a Roto-Rooter franchise and the related assets in Oakland, CA for $18.0 million in cash.Chemed FY2019 10-K — Acquisitions note
05 2018 cohort: four former Roto-Rooter franchisees + one VITAS Florida hospice · United States (Roto-Rooter franchise territories); Florida (VITAS hospice) $53.2M
Closed Jan 2018 all cash
plumbing and drain cleaning (Roto-Rooter)hospice care (VITAS)

During 2018 Chemed completed four business combinations of former franchisees within the Roto-Rooter segment for $42.2 million in cash to increase market penetration, and the VITAS segment completed one business combination in Florida for $11.0 million to increase market penetration. Individual target names and exact close dates were not separately disclosed; the date shown is a year placeholder (the deals occurred across calendar 2018). $53.2 million (Roto-Rooter $42.2M; VITAS Florida $11.0M).

During 2018, we completed four business combinations of former franchisees within the Roto-Rooter segment for $42.2 million in cash to increase our market penetration. The VITAS segment completed one business combination in Florida for $11.0 million to increase our market penetration.Chemed FY2020 10-K — Acquisitions note
06 Roto-Rooter franchise (Bloomington, Indiana) · Bloomington, Indiana $2.2M
Closed Jun 2020 all cash
residential and commercial plumbingdrain cleaning

Roto-Rooter completed the acquisition of a Roto-Rooter franchise and the related assets in Bloomington, Indiana, continuing its program of buying back independent franchise territories.

On June 1, 2020, we completed the acquisition of a Roto-Rooter franchise and the related assets in Bloomington, IN for $2.2 million in cash.Chemed FY2020 10-K — Acquisitions note
07 2022-2025 cohort: Roto-Rooter franchise tuck-ins + one VITAS Florida hospice · New Jersey, South Carolina, Georgia, Texas, Kentucky, Michigan (Roto-Rooter); Florida (VITAS) $22M
Closed Jan 2022 all cash
plumbing and drain cleaning (Roto-Rooter)hospice care (VITAS)

A series of small tuck-ins disclosed in 10-K Acquisitions notes (none individually material; date shown is a year placeholder spanning 2022-2025): 2022 - three Roto-Rooter franchises in New Jersey for $2.29 million total, plus VITAS hospice assets of one Florida provider for $1.24 million; 2023 - Roto-Rooter franchises in South Carolina ($305,000) and Georgia ($3.689 million); 2024 - Roto-Rooter franchises in New Jersey ($5.8 million, March 11), Texas ($1.5 million, March 27) and Kentucky ($5.1 million, August 20); 2025 - one Roto-Rooter franchise in Michigan ($225,000, January 3). No acquisitions were completed in 2021. approximately $22 million combined across small deals.

In 2022, Roto-Rooter acquired three franchises in New Jersey for a total of $2.29 million in cash. VITAS purchased the hospice assets of one Florida provider for $1.24 million in cash. ... On January 3, 2025, Roto-Rooter completed the acquisition of one franchise in Michigan for $225,000 in cash.Chemed FY2022-FY2025 10-K Acquisitions notes

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