19 May 2022
Brookfield expands home-improvement holdings with $6.5-Billion acquisition of U.K.’s HomeServe
On May 19, 2022, Brookfield Asset Management is set to acquire UK-based HomeServe for £4.08 billion ($6.521 billion) through Hestia Bidco Ltd., a subsidiary of Brookfield Infrastructure Partners. Shareholders of HomeServe will receive £12 ($20) per share, which will result in HomeServe delisting from the London Stock Exchange after 18 years. The company provides essential home services and is expanding into eco-friendly solutions, like electric-vehicle charger installations.
This move aligns with Brookfield's focus on energy-efficient home improvements and follows its acquisition of TerraForm Power and Canadian Enercare, enhancing its residential infrastructure amidst a shift toward renewable energy. HomeServe's North American HVAC sector, which saw a significant profit increase, is poised for growth under Brookfield's expansion strategy.
The purchase price reflects a 71% premium on HomeServe's pre-discussion stock price. HomeServe's board is poised to recommend the buyout, with irrevocable commitments from company directors and the CEO's wife already in place, signifying a 13% shareholder agreement. Despite suggestions of potential competing bids, the transaction is anticipated to be voted on in July and finalized in the year's last quarter.
