14th Apr 2005 07:01
Homeserve Plc14 April 2005 Homeserve Acquires Chem-Dry Homeserve plc, the home emergency company, today announces the expansion of itsdisaster restoration activities with the acquisition of Chem Dry UK Limited andits related businesses ("Chem-Dry") for a cash consideration, payable oncompletion of £18.9 million on a debt free basis. Chem-Dry is one of the UK's leading franchised fire and flood disasterrestoration businesses and carpet and upholstery cleaning networks. It currentlyhas over 230 franchisees covering the UK with over 640 licences and hascommercial arrangements with seven leading household insurers. The business has210 employees and operates from a national control centre in Beverley, EastYorkshire. For the year ended 30th April 2004, the audited accounts for Chem-Dry reportedan operating profit of £2.6 million on turnover of £37.1 million. Net assets atcompletion are estimated to be £4.8 million. Chem-Dry's market leadership in the domestic insured market for disasterrestoration activities will enable Homeserve to broaden its services toinsurers. The acquisition of Chem-Dry places Homeserve in a strong position tooffer a complete solution to insurers commencing with emergency repairs at HomeHotline through to permanent repairs by the recently acquired Sergon network.Chem-Dry will benefit from Homeserve's strong relationships with its existinginsurance customers which will enable synergies to be maximised. Richard Harpin, Chief Executive of Homeserve commented: "The acquisition of Chem-Dry is a significant enhancement of our disasterrestoration activities. It will broaden the services provided by Homeserve tohousehold insurers and places Homeserve in a unique position to offer a fullyintegrated service to insurance companies." 14 April 2005 Enquiries: Homeserve plc Brian Whitty, ChairmanAndrew Belk, Group Finance Director Tel: 01922 427900 TulchanAndrew Honnor Tel: 0207 353 4200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HSV.L