TORONTO - FirstService Corp. (TSX:FSV) has sold Field Asset Services, a 300-employee business that provides property services in the United States, for $55 million cash to Assurant Inc. (NYSE:AIX).
FirstService, a Toronto-based real estate services company, said Tuesday proceeds of the sale will boost its capital for future growth to US$200 million.
"Investing in FAS in 2007 was very fortuitous for FirstService shareholders", said Jay Hennick, FirstService's founder and chief executive officer.
"The strong cash flow generated during the U.S. housing and financial crisis proved to be counter-cyclical to our commercial real estate operations."
FirstService manages more than 2.3 billion square feet of residential and commercial properties through its three business units, which include Colliers International.
Atlanta-based Assurant, a specialized insurance products company, said it will combine Field Asset Services with one of its own units to form Assurant First Asset Services, to be based in Austin Texas.
“This acquisition leverages Assurant’s resources and relationships with lending institutions, and builds on Field Asset Services’ strong operating platform and vendor network,” said Gene Mergelmeyer, president and CEO of Assurant Specialty Property.
“Together, as leaders in the property preservation industry, we will play an increasing role in maintaining healthy, stable neighbourhoods in communities nationwide.”
Its Assurant Specialty Property business, with more than 5,000 employees in 12 locations, works with mortgage lenders, property managers, auto finance companies and other clients in all 50 states.
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