Kingsway Financial announces $6.75M acquisition of Southside Plumbing

Kingsway Financial (KFS) announced the acquisition of Southside Plumbing, a leading provider of commercial and residential plumbing services located in Omaha, Nebraska. Southside Plumbing is the third business operated under the Kingsway Skilled Trades platform.Southside Plumbing is one of the top commercial plumbing services company in the Omaha, Nebraska metropolitan service area. With decades of commitment to its community, Southside Plumbing has built an impressive reputation for both quality and reliability. Southside Plumbing’s customer base is split 70% commercial and 30% residential, and approximately 70% of trailing 12-month revenues are either recurring or reoccurring. Southside Plumbing’s service and repair business exhibits a strong growth profile of c. +20% per year. Kingsway believes Southside Plumbing has the potential to accelerate growth via expanded marketing efforts and new service lines, and that Southside Plumbing can increase the proportion of sales that are recurring or reoccurring given healthy momentum in service and repair. The transaction closed on August 14, 2025. The purchase price included $4M cash at close, a $0.5M seller note due in 2030, a potential earn-out of up to $1.125M based on growth in adjusted EBITDA that is payable between 2026 and 2028 and contemplates a +75% increase in adjusted EBITDA relative to trailing 12-month EBITDA at close to achieve full pay-out, plus a retained 20% equity interest, for a total maximum purchase price of $6.75M. Kingsway is also responsible for certain closing fees and expenses. In connection with the announcement, Kingsway Skilled Trades has entered into a financing arrangement with Newburyport Five Cents Savings Bank to support the growth of the Kingsway Skilled Trades platform. The financing arrangement includes senior debt in the form of a commercial term loan at a fixed rate of 7.5% with a 7-year amortization schedule, plus access to both a commercial revolving line of credit and an equipment line of credit. The relationship between Newburyport Bank and Kingsway Skilled Trades may be expanded in the future to support additional acquisitions.