HomeServe agrees £4bn takeover by Canadian investment group
19 May 2022, 10:24
The takeover brings an end to HomeServe’s 18 years as a listed company and also marks one of the biggest deals for a public UK company this year.
Home repairs and emergency services group HomeServe has agreed a £4.1 billion takeover by a Canadian investment group.
Brookfield Asset Management will pay £12 a share for HomeServe, which is one of the largest home emergency firms in the UK and also has growing international operations.
It will bring an end to HomeServe’s 18 years as a listed company and also marks one of the biggest deals for a public UK company so far this year.
The deal price marks a 71% premium on HomeServe’s closing share price on March 23, before Brookfield first approached the group.
HomeServe was founded in 1993 by chief executive Richard Harpin as a joint venture with South Staffordshire Water and went on to list in 2004.
Mr Harpin still owns a 7.4% stake in the business, which means the sale is set to boost his personal fortune by around £300 million.
His wife is also understood to own a further 4.8% shareholding in the group.
The group said Brookfield’s deal “recognises the quality of our business, our people and our future growth potential, and allows shareholders to realise their investment at an attractive valuation”.
Mr Harpin said: “Since HomeServe was founded in 1993 with just £500,000 of capital from South Staffordshire Group, the company has gone from strength to strength and now operates in 10 countries with a workforce of around 9,000 employees.”
He added: “I am proud of the company we have built and am delighted that Brookfield is committed to providing long-term capital and global expertise.”
HomeServe offers household repair, maintenance and installation services for systems such as plumbing and heating across the UK, as well as in the United States and Europe.
The group also provides a range of insurance products.
Sam Pollock, managing partner and chief executive of Brookfield Infrastructure, said: “Richard and the team share Brookfield’s vision for the future of residential infrastructure, making Brookfield the ideal partner to scale the business internationally and across new product offerings.”
