Wed, 27 Oct 2021 | BUSINESS SALE
Home repairs and improvements firm HomeServe has completed the acquisition of emergency repairs provider CET Structures Ltd for £53 million, approximately a 13.6x multiple of the target company’s £3.9 million underlying EBITDA for the year ending March 31 2021.
The deal forms part of Walsall-based HomeServe’s strategy to strengthen its UK offering of services including emergency home assistance, HVAC and home assistance cover. Working on behalf of consumer brands, Leicestershire-based CET provides services including emergency plumbing, heating and electrics to home insurance policy holders.
As of the 2021 financial year, the two companies collectively cover around 4.9 million homes through a 4,000-strong network of directly employed and contract engineers.
CET has been acquired from private equity firm Palatine, which took a majority stake in the business in 2018. The acquisition has been funded from debt and working capital facilities provided by Beechbook Capital and Clydesdale and Yorkshire Bank Acquisition Finance.
In the most recent financial year, CET reported revenue of £32.3 million, compared to £29.2 million the year prior, while its £3.9 million underlying EBITDA for 2021 was up from £2.5 million in 2020.
HomeServe CEO Richard Harpin 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."
CET Group CEO Peter Eglinton added: "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."
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