HomeServe completes £52m US deal in largest ever transaction

WALSALL-based home maintenance provider HomeServe has completed its largest ever takeover, the £52m acquisition of a US utilities business.

Utility Services Partners (USP), which is based in Pennsylvania, is a complementary business for HomeServe and dramatically increases the latter’s presence in the US market – a sector it has been eager to expand into.

In a brief announcement to the markets, HomeServe it was pleased to have completed the deal, which will see the USP operation renamed HomeServe USA.

“Following completion, HomeServe USA offers its products to 43m households through affinity partnerships and now serves over 2.7m customers,” it said.

The deal was completed in cash.

USP provides home assistance service line repair contracts in the US and Canada through partnerships with a number of municipalities and utility companies.  

Founded in 2003, USP has developed relationships with more than 300 partners.  Through these, it has access to over 9.4m households across the US, providing HomeServe with significant marketing opportunities and increasing its catchment area in the US to more than 40m households.
 
USP has 400,000 customers and 600,000 home assistance contracts while its retention rates are consistent with those of HomeServe’s existing US operation.

Its core products, representing 80% of its existing contracts, are water and sewer line coverage.