Homeserve shares rise on acquisition of home emergency aid business

(Alliance News) - Homeserve PLC on Wednesday said it has completed the acquisition of home ...

Alliance News 27 October, 2021 | 8:42AM
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(Alliance News) - Homeserve PLC on Wednesday said it has completed the acquisition of home emergency assistance business CET Structures Ltd, which is set to lift the company's earnings slightly.

Homeserve shares were up 3.6% to 861.00 pence each in London on Wednesday morning.

The GBP53 million acquisition was made on a debt-free, cash-free basis and is to be funded via existing debt facilities. It is expected to be "modestly enhancing" to HomeServe's adjusted earnings per share in the current financial year.

The FTSE 250-listed home repairs and improvements company stressed that the acquisition transaction brings together "two well-positioned complementary businesses".

Together with Homeserve's own home assistance cover business, the two companies cover around 4.9 million homes and completed about 700,000 jobs in financial 2021.

"CET has a leading market position and provides home emergency assistance for one in eight UK households. We are very impressed by the business, its customer partnerships and its digital capabilities, and there are exciting opportunities to develop the plumbing, heating and electrics services which are core to both of our operations," said Homeserve Chief Executive Ross Clemmow.

Over time, Homeserve said, there will be many opportunities to share technology and service expertise between the businesses.

"Post acquisition, the CET team will continue to focus on growing the business, and the two businesses will work together to explore opportunities to share resources, expertise and technology to further improve their service offerings," Homeserve said.

By Greg Roxburgh; gregroxburgh@alliancenews.com

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