Curreen Capital Partners, LP on Frontdoor
Thesis
Frontdoor sells home service plans and coordinates repairs through a network of contractors. The company serves only about 2% of U.S. homes, leaving room for continued organic expansion. It generates free cash flow that can be allocated toward growth, debt reduction, repurchases and complementary acquisitions. The company also fits Curreen's preferred spinoff profile, having separated from ServiceMaster in 2018.
“Frontdoor serves about 2% of U.S. homes, and uses its free cash flow to grow organically, pay down debt, repurchase shares, and acquire complementary businesses.”