31st Mar 2016 06:50
LONDON (Alliance News) - Home emergency cover provider Homeserve PLC on Thursday said it has entered a deal to acquire Utility Service Partners for USD75.0 million in cash, which it said was its biggest single step ever into the US market.
The FTSE 250-listed company, which provides insurance cover and repairs for broken boilers and burst pipes, said USP is a leading home assistance service line repair contracts provider in the US and Canadian markets, holding partnerships with a number of municipalities and utility companies.
The company has 400,000 customers and 600,000 home assitance contracts on its books, Homeserve said, with retention rates in line with Homeserve's existing US business.
Homeserve said it will continue to manage USP from its Pennsylvania headquarters and expects a USD15.0 million boost to earnings before interest, taxation, depreciation and amortisation in the financial year to March 2018, the first full year of ownership, with a neutral impact in financial 2017 due to investments.
"I am delighted with the progress of our business in the US, which now accounts for over a third of our global customers. This is the largest acquisition that we have made since entering the US market in 2003 and will accelerate our growth, both in the US and the group," said Richard Harpin, Homeserve's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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