Sirva Prepares for IPO

The sole underwriter for the offering is Goldman Sachs.

This is a leading provider of end-to-end relocation and moving services for multi-national corporations, government institutions and consumers, through a worldwide network of 1,475 locations in 170 countries. Its services are designed to provide customers, typically large corporations, with the ability to efficiently and expeditiously relocate employees globally to execute their business strategies.

The company provides these services since relocation and moving are outside of customers’ core competencies. Sirva helps manage all aspects of an employee’s relocation and believes that its suite of over 50 distinct services provides an enhanced experience for corporate and government customers, relocating employees and their families.

According to the 2014 Workforce Management Relocation Hotlist, Sirva held a 26% volume share globally in relocation services in 2014 among companies that self-report to the Relocation Hotlist. In 2014, the company executed over 333,000 relocations and moves, 55% of these were relocations with contracted corporate customers, 38% were moves with individual consumers and 7% were relocations with contracted government customers. It served more than 1,800 corporate customers in 2014, including approximately 25% of the Fortune 500 and 60% of the Dow Jones 30, and many government agencies.

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The company detailed its finances as:

Between 2010 and 2014, we increased our service revenue from $1,201.6 million to $1,464.4 million, Net Service Revenue from $373.4 million to $485.1 million, Adjusted EBITDA from $34.1 million to $84.5 million and net income (loss) from $(52.8) million to $60.7 million. For fiscal years 2012, 2013 and 2014, our service revenue was $1,438.9 million, $1,452.0 million and $1,464.4 million, respectively, Net Service Revenue, which we define as service revenue less purchased transportation expense, was $444.3 million, $459.9 million and $485.1 million, respectively, Adjusted EBITDA was $60.9 million, $70.9 million and $84.5 million, respectively, and net income (loss) was $(1.4) million, $9.7 million and $60.7 million, respectively. For the six months ended June 30, 2015, our service revenue was $664.1 million, Net Service Revenue was $236.1 million, Adjusted EBITDA was $34.1 million and net income was $3.8 million.

Sirva intends to use the proceeds from this offering to repay certain of outstanding indebtedness and for general corporate purposes. At the same time, there are some selling stockholders, and the company will not receive proceeds from those sales.

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