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Acquisition

26th May 2009 07:00

RNS Number : 7614S

Homeserve Plc

26 May 2009

HomeServe plc Acquires SFG

HomeServe plc today announces the further expansion of its international operations with the acquisition of Société Française de Garantie S.A. ('SFG') from April Group Dommages Particuliers S.A. part of April Group S.A.

SFG is a leading French provider of extended warranty services for electrical appliances. Operating from its base in Aix-En-Provence, SFG has 55 employees and operates a national network of subcontract appliance repair engineers. In the year ending 31 December 2008 SFG and its wholly owned subsidiary Cabinet Serge Fisnot S.A.R.L. (‘CSF’) reported aggregate profits before tax of £3.3 million and at 31 December 2008 SFG and CSF had combined gross assets of £26.0 million.

The total consideration payable is £24.0 million and at completion the business had approximately £6.9 million of cash balances, resulting in a net consideration of £17.1 million. £1.8 million of the total consideration is conditional upon the achievement of future revenues. The consideration will be funded from existing facilities.

The acquisition of SFG marks the beginning of the next phase of HomeServe's development in continental Europe and provides an ideal platform for the group's European warranty operations.

Richard Harpin, Chief Executive commented:

“This acquisition represents a very significant step forward in our plans to extend our successful UK warranty business to other European markets. SFG provides HomeServe with an excellent position in the French extended warranty market and we believe that our UK model will compliment the existing business and open up many new and exciting opportunities.”

26 May 2009

Enquiries:

HomeServe plc

Richard Harpin, Chief Executive

Mathew Wootton, Investor Relations Director Tel: 01922 655332

Tulchan Group

Andrew Honnor Tel: 020 7353 4200

Stephen Malthouse

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQILFLIEVIEFIA

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