Homeserve makes £53m swoop for counterpart
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Homeserve, the Walsall-based home repairs and improvements business, has bought Castle Donington claims management insuretech firm CET Property Assurance in a deal worth around £53m.
The deal marks a partial exit from the CET group for private equity firm Palatine.
CET provides emergency plumbing, heating and electrics services to home insurance policy holders on behalf of leading consumer brands, via its digital claims handling and job management platform.
Together, the companies will serve almost 5m homes in the UK and employ around 4,000 people.
Since Palatine’s initial investment in November 2018, revenues have grown by almost £12m to £32m and EBITDA has more than doubled. Its workforce has increased significantly too, rising from 190 to more than 300 in the last 12 months.
Ross Clemmow, chief executive, EMEA, HomeServe, said: “CET has a leading market position and provides home emergency assistance for one in eight UK households. We are very impressed by the business, its customer partnerships and its digital capabilities, and there are exciting opportunities to develop the plumbing, heating and electrics services which are core to both of our operations.”
Peter Eglinton Group CEO of CET said: “I am very proud of what the team have achieved over the past three years with their focus on our clients and their customers. The technology has become a real differentiator for us and combined with our skilled home-based staff and our professional contractors we have been able to grow significantly and scale effectively.
“Palatine have been an excellent and supportive investor in CET and we have achieved a great deal in partnership together. We feel this is a great time to be acquired by HomeServe and look forward to their support in making us an even better business.
Richard Harpin, chief executive of HomeServe, said: “HomeServe’s UK business continues to deliver attractive returns and market leading service to our customers. The acquisition of CET represents a new avenue of growth closely aligned to our core business, as part of the UK team’s re-energised strategy to deliver growth through digitisation, improved marketing and new partnerships.”
Richard Thomas, senior investment director at Palatine, the previous owner of CET, said: “The CET team have done an excellent job in growing the business through digitalisation, employee engagement and operational improvement. It’s been a pleasure partnering with the team and we wish them all the best on the next phase of their growth with HomeServe.”
Deloitte FIG Corporate Finance acted as Palatine’s exclusive financial adviser and Browne Jacobson acted as their legal adviser. PwC provided commercial and financial due diligence. Geoff Perry and Shauna Halls from Squire Patton Boggs led a team advising Homeserve.
Bespoke M&A acted for CET and Palatine.