Roto-Rooter Strengthens Presence Across South Texas Through Major Franchise Acquisition

CINCINNATI, Ohio – June 2026 – Roto-Rooter Services Company, a wholly owned subsidiary of Chemed Corporation, has announced the acquisition of a previously independent Roto-Rooter franchise serving a large portion of South Texas. The transaction includes service territories covering Corpus Christi, the Rio Grande Valley, Beaumont, and numerous surrounding communities, marking another significant step in the company’s long-term expansion strategy.

Acquisition Covers 21 Counties Across South Texas

The newly acquired franchise territory spans 21 counties in South Texas, providing Roto-Rooter with direct operational control over several key metropolitan areas. Major cities included within the territory are Corpus Christi, McAllen, Laredo, and Brownsville, all of which represent important economic and population centers in the region.

The acquisition was completed for approximately $12 million. By bringing these operations under corporate ownership, Roto-Rooter aims to strengthen service quality, improve operational efficiency, and expand its market presence throughout Texas.

Strategic Move Supports Long-Term Growth Objectives

The acquisition aligns with Roto-Rooter’s ongoing strategy of purchasing franchise territories and integrating them into its company-operated network. Over the years, the company has pursued similar transactions in multiple regions across the United States, allowing it to standardize service delivery while increasing profitability and market share.

By converting independent franchise territories into company-owned operations, Roto-Rooter gains greater control over customer experience, employee training, technology implementation, and operational processes. Industry analysts view these acquisitions as an effective way for established service brands to enhance consistency while accelerating growth.

Importance of the South Texas Market

South Texas represents one of the most dynamic regions in the state, with growing populations, expanding residential developments, and increasing commercial construction activity. Cities such as Corpus Christi and McAllen continue to attract new residents and businesses, creating sustained demand for plumbing, drain cleaning, and emergency repair services.

The Rio Grande Valley, in particular, has experienced significant economic growth over the past decade. By acquiring direct control of operations in this area, Roto-Rooter positions itself to better serve customers while capitalizing on future growth opportunities.

Key Markets Included in the Acquisition

The transaction encompasses several important Texas markets, including:

• Corpus Christi – A major Gulf Coast city with a strong industrial and residential customer base.
• McAllen – One of the fastest-growing metropolitan areas in South Texas.
• Laredo – A critical trade and logistics hub along the U.S.-Mexico border.
• Brownsville – A rapidly developing city benefiting from manufacturing and aerospace investments.
• Additional communities throughout the Rio Grande Valley and Beaumont regions.

Together, these markets provide significant opportunities for continued service expansion and customer growth.

Roto-Rooter’s Ongoing Franchise Acquisition Strategy

This latest acquisition is not an isolated event. Earlier in 2026, Roto-Rooter completed the purchase of franchise territories in Fort Worth, Texas and San Francisco, California for a combined purchase price of approximately $20.6 million. Those acquisitions were also designed to strengthen the company's operational footprint and improve long-term performance.

The company has increasingly focused on acquiring larger franchise territories that can be integrated into existing corporate operations. According to previous company statements, these acquisitions are intended to enhance productivity, increase market share, and improve profitability.

Benefits of Corporate Ownership

Bringing franchise territories under direct corporate ownership offers several potential advantages:

• Operational consistency across all service locations.
• Improved employee training and workforce development.
• Enhanced customer service standards.
• Greater investment in technology and equipment.
• More efficient management of resources and logistics.
• Increased profitability through centralized operations.

These benefits help create a more unified national network while maintaining local service capabilities.

About Chemed Corporation

Roto-Rooter operates as a wholly owned subsidiary of Chemed Corporation (NYSE: CHE), a publicly traded company headquartered in Cincinnati, Ohio. Chemed manages two primary business divisions:

• Roto-Rooter – The nation's leading provider of plumbing repair, drain cleaning, sewer maintenance, and water cleanup services.
• VITAS Healthcare – The largest provider of hospice and end-of-life care services in the United States.

Through these subsidiaries, Chemed serves millions of customers and patients nationwide while maintaining a strong presence in both healthcare and home services industries.

Impact on Customers and Communities

Customers throughout South Texas are expected to benefit from the transition to corporate ownership. Roto-Rooter has emphasized its commitment to delivering reliable plumbing and drain-cleaning services supported by nationally recognized standards and resources.

The acquisition may also create opportunities for additional hiring, workforce training, and investment in service infrastructure throughout the region. As demand for residential and commercial plumbing services continues to rise, expanded corporate resources could help improve response times and service availability.

Expected Customer Benefits

• Faster response to emergency service requests.
• Access to advanced plumbing and drain-cleaning technologies.
• Expanded availability of trained technicians.
• Improved scheduling and customer support systems.
• Consistent service quality across all locations.

Texas Remains a Key Growth Market

Texas continues to be one of the fastest-growing states in the United States, making it an attractive market for service providers. Rapid population growth, new housing developments, infrastructure investments, and commercial expansion all contribute to increased demand for plumbing and maintenance services.

By expanding its direct operations in South Texas, Roto-Rooter reinforces its commitment to serving one of the country's most important regional markets. The acquisition also complements the company's broader strategy of increasing corporate ownership across strategic territories nationwide.

Industry Perspective on Franchise Buyouts

Many large service companies are increasingly acquiring franchise territories as part of broader consolidation efforts. Corporate ownership can provide stronger operational oversight while enabling businesses to invest more effectively in technology, training, and marketing.

For Roto-Rooter, the acquisition of the Corpus Christi, Rio Grande Valley, and Beaumont territories represents another step in a multi-year effort to expand its company-operated footprint. Previous acquisitions in California, Texas, and other regions suggest that the company intends to continue evaluating opportunities for future growth.

Future Outlook

While the company has not disclosed specific financial projections related to the transaction, industry observers expect the acquisition to strengthen Roto-Rooter's position in South Texas and contribute to long-term revenue growth. As the company integrates the newly acquired operations, attention will focus on service performance, customer satisfaction, and operational efficiency.

Company officials have also noted that forward-looking statements regarding future performance involve risks and uncertainties, and actual results may differ from expectations depending on market conditions and other factors.

Conclusion

The acquisition of the Corpus Christi, Rio Grande Valley, and Beaumont franchise territories represents an important milestone in Roto-Rooter’s continued expansion strategy. With a purchase price of approximately $12 million and coverage across 21 South Texas counties, the transaction significantly strengthens the company’s presence in one of the nation’s fastest-growing regions.

As Roto-Rooter continues to transition more franchise territories into company-operated locations, the organization is positioning itself for sustained growth, enhanced service capabilities, and stronger customer relationships across the United States. The latest Texas acquisition further demonstrates the company's commitment to strategic expansion and long-term operational excellence.

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