Homeserve buys National Grid Energy Services unit

14th Apr 2010 07:35

Home maintenance specialist Homeserve is extending its US reach with the acquisition of National Grid Energy Services' service contract business.The net consideration is expected to be about $14m, with gross consideration of $30m reduced by net liabilities of around $16m. The consideration will be funded from existing facilities.Completion of the deal is expected to take place within 120 days. Home Service USA has also entered into a marketing agreement with National Grid USA to use the National Grid Energy Services name. National Grid Energy Services is a subsidiary of National Grid USA, one of the largest utilities in the US serving 6.7 million customers including over 5 million residential households. Richard Harpin, chief executive of HomeServe, said: "We are delighted to announce this acquisition and marketing agreement which represents a significant step forward in the development of our US operations and reflects our strategy of expanding our international businesses through a combination of organic growth delivered by additional affinity partnerships and selective acquisitions."