Arizona Tribune - Kingsway Announces Acquisition of AAA Flexible Pipe Cleaning Corp.

CHICAGO, IL / ACCESS Newswire / August 5, 2025 / Kingsway Financial Services Inc. (NYSE:KFS) ("Kingsway" or the "Company"), the only publicly-traded US company employing the Search Fund model to acquire and build great businesses, today announced the acquisition of AAA Flexible Pipe Cleaning Corp ("Advanced Plumbing and Drain"), a leading commercial and residential plumbing services business located in Cleveland, Ohio. Advanced Plumbing and Drain is the second business operated under the Kingsway Skilled Trades platform.

Advanced Plumbing and Drain is one of the top commercial plumbing services companies in the Cleveland, Ohio metropolitan service area. Founded in 1926 by Benjamin Fisco, Advanced Plumbing and Drain has been owned and operated by the Fisco family for nearly a century and has developed a well-earned reputation for quality, integrity, professionalism, and service.

Advanced Plumbing and Drain's customer base is split 65% commercial and 35% residential, and approximately 90% of revenues are either recurring or reoccuring. Kingsway believes Advanced Plumbing and Drain has significant opportunity for both revenue and profit growth, and Kingsway intends to accelerate investment in people, service lines, and marketing.

The transaction closed on August 1, 2025. The purchase price included $3.0 million cash at close, a $0.5 million seller note due in 2030, and a potential earn-out of up to $1.5 million based on growth in adjusted EBITDA that is payable in 2027 and 2028. Kingsway is also responsible for certain closing fees and expenses.

Management will provide additional details about the acquisition during the company's second quarter 2025 earnings call. Rob Casper, President of Kingsway Skilled Trades, sourced and led the transaction for Kingsway.

Management Commentary

"I am excited to welcome Advanced Plumbing and Drain to the Kingsway Skilled Trades platform," said JT Fitzgerald, Kingsway's President and CEO. "Advanced Plumbing and Drain is a wonderful fit for our strategy, and I am confident that with Rob's leadership and Kingsway's financial backing, the future is bright for a business that has been a valuable member of the northeast Ohio community for almost a century."

"It is a tremendous honor to be entrusted with Advanced Plumbing and Drain by the Fisco family," said Rob Casper, President of Kingsway Skilled Trades. "I am committed to building on the company's reputation for quality work and uncompromising customer service, and am thrilled to help write the next chapter of the company's story."

"I am thrilled to partner with the Kingsway team, a collaboration I believe will drive remarkable growth and innovation," said Ernie Fisco, President of Advanced Plumbing and Drain. "Kingsway's expertise and vision align seamlessly with our commitment to delivering exceptional value to our customers."

About AAA Flexible Pipe Cleaning Corp

Advanced Plumbing and Drain is a trusted leader in plumbing services across Cleveland and Northeast Ohio, with decades of experience serving municipal, commercial, and residential clients. Known for its deep expertise in plumbing, waterproofing, and sewer cleaning and repair, Advanced Plumbing and Drain brings innovative solutions and state-of-the-art technology to every job. The company's licensed, bonded, and insured technicians are available 24/7, delivering reliable service and peace of mind to its customers.

About the Company

Kingsway Financial Services Inc. ("Kingsway") (NYSE: KFS) is the only publicly-traded US company employing the Search Fund model to acquire and build great businesses.

Kingsway owns and operates a collection of high-quality B2B and B2C services companies that are asset-light, growing, profitable, and that have recurring revenues. Kingsway seeks to compound long-term shareholder value on a per share basis via its decentralized management model, its talented team of operators, and its tax-advantaged corporate structure.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Words such as "expects," "believes," "anticipates," "intends," "estimates," "seeks," and variations and similar words and expressions are intended to identify such forward-looking statements; however, the absence of any such words does not mean that a statement is a not a forward-looking statement. Such forward-looking statements relate to future events or future performance, but reflect Kingsway management's current beliefs, based on information currently available. A number of factors could cause actual events, performance, or results to differ materially from the events, performance, and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the section entitled "Risk Factors" in the Company's 2024 Annual Report on Form 10-K and subsequent Form 10-Qs and Form 8-Ks filed with the Securities and Exchange Commission. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Additional Information

Additional information about Kingsway, including a copy of its Annual Reports can be accessed on the EDGAR section of the U.S. Securities and Exchange Commission's website at www.sec.gov, on the Canadian Securities Administrators' website at www.sedar.com, or through the Company's website at www.kingsway-financial.com.

For Investor Inquiries:
Hayden IR
James Carbonara
(646) 755-7412
[email protected]

For Company Inquiries:
Kingsway Financial Services Inc.
Kent Hansen, CFO
(312) 766-2163
[email protected]

SOURCE: Kingsway Financial Services, Inc.

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