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May 19, 2022

Brookfield to buy U.K. repair site HomeServe for £4.1B

Teal Linde discusses Brookfield Asset Management


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Brookfield Asset Management Inc. agreed to buy emergency household repairs provider HomeServe Plc in a deal valuing the company at £4.1 billion (US$5 billion), one of the UK’s largest take-private transactions this year.

Investors will get 1,200 pence for each HomeServe share, the companies said Thursday. That’s 71 per cent higher than HomeServe’s close on March 23, the day before Brookfield announced its interest. Founder Richard Harpin, his wife and directors of the company have irrevocably agreed to tender their shares in the bid. They own a combined 12.8 per cent stake.

The stock rose as much as 12 per cent to 1,175 pence Thursday. Bloomberg reported last week that the Canadian company was close to an agreement to buy HomeServe.

Founded in 1993, HomeServe provides repair, maintenance and installation services for plumbing, heating and electrical systems to households across the UK, as well as the US and parts of Europe. It also offers a range of insurance products to homeowners.

Brookfield said in March that it was exploring a takeover of London-listed HomeServe. The investment firm, which has tabled a number of proposals to HomeServe, received an extension under UK takeover rules to make a firm offer for the company by May 19. 

The company, which has grown through a series of acquisitions, saw revenue rise 15 per cent to 1.3 billion pounds last year -- a period in which pandemic lockdowns around the world continued to confine people to their homes.

HomeServe worked with JPMorgan Chase & Co., UBS Group AG and Goldman Sachs Group Inc. on the deal. Deutsche Bank AG was lead adviser to Brookfield, which also worked with Bank of America Corp. Debt financing is being provided by Bank of America, Deutsche Bank, Mitsubishi UFJ Financial Group Inc. and Royal Bank of Canada.