The UK firm is likely to trade higher and its fundamentals look sound, suggesting this is a takeover that doesn’t need to happen
No question about it: Richard Harpin, chief executive of HomeServe, has an uplifting tale to tell about entrepreneurial success in the unfashionable business of fixing pipes and boilers and selling parallel insurance policies via utility companies.
He co-founded the business in 1993 with £500,000 of backing from South Staffordshire Water. Now HomeServe has 9,000 staff in 10 countries. Agreeing a £4.1bn sale – or £4.8bn including debt – to Canadian property and infrastructure giant Brookfield is an achievement and a half. Harpin will see his stake valued at £300m and his wife’s at almost £200m.
