Homeserve, the owner of handyman website Checkatrade, has bought home emergency assistance firm Cet for around £53million, the company said today.
Cet is a British firm that provides emergency plumbing, heating and electrics services to households on behalf of insurers.
Homeserve, which benefited from a global surge in demand for repairs during the pandemic, said the acquisition would allow it to expand its UK business in home assistance and emergency cover.
Homeserve has bought home emergency assistance firm Cet for around £53million
Homeserve shares rose 2.8 per cent to 855p in early trading on Wednesday.
However, they remain some 30 per cent below their pre-pandemic levels in February 2020.
Homeserve was booted out of the top FTSE 100 index at last year’s reshuffle and is now listed on the FTSE 250.
Co-founder and chief executive, Richard Harpin, said the acquisition of Cet represented ‘a new avenue of growth’ as part of the group’s digitalisation push.
‘HomeServe’s UK business continues to deliver attractive returns and market leading service to our customers,’ he added.
Harpin, one of the longest-serving chief executives of the Footsie, warned this summer that Britain was facing a ‘perfect storm’ of staff shortages that would hamper the recovery from the coronavirus crisis.
Homeserve shares are still to fully recover from last year’s crash in the wake of the pandemic
Ross Clemmow, HomeServe’s EMEA chief executive, said Cet 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,’ he added.
In its last financial year to March, Cet raked in £32.3million in revenues, up from £29.2million in the previous year, with the business expected to deliver ‘strong growth’ in the current financial year.
The acquisition, on a debt-free and cash-free basis, will be funded through existing debt facilities, Homeserve said.
The group said the year was progressing well, with trading in line with previous guidance.
It will announce its interim results on Tuesday 16 November.
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