FirstService Corporation (FirstService), a global real estate management company, has announced unofficial plans to divide into two separate companies – FirstService Corporation and Colliers International. Once operations are independently run, FirstService will be comprised of the existing FirstService Residential and FirstService Brands divisions.
“Over the past several years we continued to strengthen and grow our company, expanding operations internally and through acquisitions, extending our geographic reach, divesting non-core assets and undertaking a significant re-branding initiative all while maintaining a strong balance sheet and cash flows,” says Jay Hennick, Founder and Chief Executive Officer of FirstService. “Today we are taking the next bold, but logical, step in unlocking even greater value for FirstService shareholders by separating our company into two, billion dollar public companies, Colliers International and FirstService Corporation.”
Subject to final approval from the FirstService Board of Directors, the proposed separation will help FirstService narrow its focus on core businesses and customers. As an independently-run entity, FirstService’s company goals will include:
- Targeting repeat property services centred around the residential market;
- Providing greater value to shareholders through improved margins and operational effectiveness;
- Refining the company’s disciplined growth strategy through more focused approaches; and
- Generating significant cash flow for reinvestment in growth opportunities, thereby demonstrating attractive investment returns to shareholders.
Currently, FirstService is the largest manager of residential communities in North America. In 2014, the company’s revenue totaled $1.1-billion U.S., including capital from residential acquisitions.