Frontdoor, Inc. (FTDR): M&A transaction — Frontdoor completes $585M acquisition of 2-10 Home Buyers Warranty, prices $1.47B credit facility

Frontdoor, Inc.

Purchased 2-10 Home Buyers Warranty for $585M all-cash, subject to customary closing adjustments.
Priced $1.47B credit facility: $418M Term Loan A, $800M Term Loan B, and $250M revolving credit.
Proceeds used to retire existing Term A/B debt and fund the acquisition; remainder for share repurchases or general corporate.
Acquisition immediately grows Frontdoor’s customer base, revenue, and earnings.
Diversifies portfolio into New Home Structural Warranty category and opens cross-selling opportunities.

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Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

Frontdoor, Inc. completed an acquisition involving 2-10 HBW Acquisition, L.P. for $585 million (closed 2024-12-19).

Action: acquisition
Counterparty: 2-10 HBW Acquisition, L.P.
Consideration: $585 million
Closing: 2024-12-19

Exact text from the filing

On December 19, 2024 , pursuant to the previously announced Share Purchase Agreement, dated as of June 3, 2024 (the “ Purchase Agreement ”), by and between the Company, 2-10 HBW Acquisition, L.P., a Delaware limited partnership (“Seller”) and 2-10 Holdco, Inc., a Delaware corporation (“ 2-10 ”) , the Company purchased from Seller all of the issued and outstanding equity interests in 2-10 for aggregate cash consideration of $585 million, subject to certain customary adjustments based on, among other things, the amount of cash, debt, transaction expenses, working capital and regulatory capital in the business of 2-10 as of the closing of the Transaction (collectively, the “ Transaction ”).

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Frontdoor, Inc. filing history →

Source: SEC EDGAR

accession 0000950170-24-138432

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