Frontdoor Completes Acquisition of 2-10 Home Buyers Warranty

Acquisition and Financial Overview - The acquisition of 2-10 Home Buyers Warranty (2-10 HBW) was valued at $585 million, with the final purchase price subject to adjustments based on various financial factors [1][11] - FTDR announced a successful pricing of its $1.47 billion credit facility, which includes a $418 million Term Loan A, an $800 million Term Loan B, and a $250 million revolving credit line [3][10] Market Performance - FTDR's shares have increased by 56.1% over the past six months, significantly outperforming the Zacks Building Products - Miscellaneous industry and the S&P 500, which grew by 6.9% and 7.7%, respectively [4] - Despite the positive performance, FTDR's shares experienced a slight decline of 0.6% during the trading session and 1.9% in after-hours trading [8] Strategic Positioning - The acquisition of 2-10 HBW enhances FTDR's customer base, revenue, and earnings, aligning with its growth strategy [2][9] - FTDR is well-positioned for growth in the home warranty sector, supported by strong customer retention, expanded brand awareness, and ongoing acquisition efforts [5] Earnings Estimates and Analyst Confidence - The Zacks Consensus Estimate for FTDR's 2025 earnings per share (EPS) has increased by 6.5% in the past 60 days, indicating growing analyst confidence in the stock [18][19]