New 'consolidator' looms on horizon

June 1, 2000
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TUCSON, AZ — Add one more name to the list of national consolidators: Service America Systems, Inc.

The company, a subsidiary of Chemed Corp., recently announced its first hvac contractor acquisition, Action Service, Inc., located here.

The acquired contractor is combining with Service America’s existing Tucson branch. Steven Voevodsky, former owner of Action Service, runs the combined operation.

“Service America was looking for a company to grow their service,” said Voevodsky. “It is also a great opportunity for our people.”

Test site set

Action Service, primarily a residential service contractor, has revenues of $2 million, and combined with the existing Service America branch, has total sales of more than $2.5 million.

The Tucson location is a “test site,” according to Voevodsky, as his company looks for new avenues to market and sell agreements in Arizona and Florida. Service America said it would like to set up future acquisitions but is waiting to see the results from the Tucson location.

“Our strategy is to prove the success of our first acquisition and how it blends with Service America before we make any more acquisitions,” said Dave Lewis, vice president of strategic and creative services. “We would like to eventually expand beyond our current regions, too.”

Voevodsky, who started the business from scratch 71/2 years ago, is pleased with the cash deal. He also remains “the boss.”

“They don’t dictate to us how to run the business,” he said.

Although the acquisition has the look and feel of consolidation, Lewis is not ready to put the consolidation label on his company just yet.

“We have somewhat different views [from consolidators],” he said. “We are blending the retail C.O.D. side of the business with our existing service agreement business.”

No stranger

Although new to the consolidation game, Service America is no stranger to the hvac trade. Headquartered in Deerfield Beach, FL, the company markets major appliance and hvac repair work through service contracts, and provides repair, replacement, and maintenance on the retail level.

Service America has been offering service agreements to customers in Arizona and Florida for more than 25 years. The company has fulfilled more than 2 million agreements which are serviced by more than 650 field technicians.

Parent company Chemed, which offers residential and commercial services, also operates Roto-Rooter, Inc., a plumbing and drain-cleaning service, and Patient Care Inc., which offers home health care services.

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