Homeserve expands in US with acquisition

Homeserve has acquired National Grid Energy Services’ service contract business from National Grid Energy Services LLC.

Homeserve said the acquisition significantly expands its US business, adding over 186,000 customers and 365,000 contracts to its existing 570,000 customers and 740,000 contracts.

Home Service has also entered into a 10 year marketing agreement with National Grid USA to use the National Grid Energy Services name.

The total consideration payable on completion is $30m (£19m) and at that time the business is expected to have approximately $16m (£10m) of net liabilities, resulting in net consideration of approximately $14m (£9m).

The contract business provides heating, cooling and water heater services to customers across four northern US states comprising Massachusetts, New Hampshire, New York and Rhode Island.

Richard Harpin, chief executive of Homeserve said: “We are delighted to announce this acquisition and marketing agreement which represents a significant step forward in the development of our US operations and reflects our strategy of expanding our international businesses through a combination of organic growth delivered by additional affinity partnerships and selective acquisitions.

"I am looking forward to working with National Grid as we continue to build a successful home assistance business in the US”.