Brookfield Asset Management is set to buy London-listed repairs business HomeServe for a little over £4bn, both companies have announced today.
The offer of 1200p per share by the Canadian investment giant, which is based in Toronto, equates to a 71 per cent premium on HomeServe’s 704p closing price on 23 March.
Home repairs and improvements surged during the pandemic, when populations were suddenly spending more time homebound under lockdown restrictions.
The acquisition, on which JP Morgan, UBS and Goldman Sachs were advisers, is expected to be unanimously approved by HomeServe’s shareholders.
Founder and chief executive of the British repairs business, Richard Harpin, said: “Since HomeServe was founded in 1993 with just £500,000 of capital from South Staffordshire Group, the company has gone from strength to strength and now operates in 10 countries with a workforce of around 9,000 employees.
“I am proud of the company we have built and am delighted that Brookfield is committed to providing long-term capital and global expertise, which I am confident will accelerate progress towards our vision to be the world’s largest, most trusted provider of home repairs and improvements.”
HomeServe has returned more than £800m in dividends to shareholders since its demerger and listing in 2004, and is expected to fall under Brookfield’s utility and residential infrastructure portfolio wing, which also includes one of Brazil’s largest logistics operators VLI.
Sam Pollock, managing partner and CEO of Brookfield Infrastructure, said: “At Brookfield, we are building the world’s leading residential infrastructure investment platform, and our acquisition of HomeServe allows us to partner with one of the highest quality companies in the sector.
“HomeServe and Brookfield together can play an instrumental role in supporting our communities with their net zero objectives and improved customer value proposition.”