HomeServe continues US expansion with new acquisitions
WALSALL-based domestic repair firm HomeServe has continued its US expansions with the acquisition of 135,000 home assistance policies of South Jersey Energy Services Plus.
In addition, HomeServe USA has signed a long-term agreement with Arizona-based Millennium Energy Holdings for the marketing of home emergency policies to 580,000 domestic customers of the firm’s utility affiliates.
HomeServe USA now has access to over 21m affinity partner households, including an extra 900,000 households as a result of these two new agreements.
The company said today it remained on track to deliver an operating profit of £6m in the year ended March 31.
South Jersey Energy Services Plus is part of South Jersey Industries which, through its South Jersey Gas subsidiary, services around 325,000 domestic households in Southern New Jersey.
As part of the agreement HomeServe USA has also signed a long term agreement to use the ‘South Jersey Energy Services Plus’ brand in future marketing material in the region.
The agreement Millennium will see the marketing of home emergency policies to residential customers of Tucson Electric Power and UniSource Energy Services.
All three companies are subsidiaries of UniSource Energy Corporation.
HomeServe said it would finance the South Jersey acquisition using its existing banking facilities, with an initial payment £1.8m in the current financial year, and a further £3.7m in future performance based payments.
HomeServe USA chief executive Jonathan King said: “These agreements with Millennium Energy and South Jersey Energy Services Plus take the total number of partners we are working with in the US to 17, who between them have over 21m households.
“We are looking forward to working with these new partners and replicating the success we are already achieving with our existing gas and electric partners.”
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