HomeServe, the global home repairs and improvements business, has completed the £53 million acquisition of home emergency outsourcing specialist CET Structures.
HomeServe, which has its UK headquarters in Walsall, said the deal would bring together two “well-positioned, complementary businesses” – by way of its home assistance cover and CET’s home emergency assistance.
CET is based out of offices on the Willow Farm Business Park, Castle Donington, near East Midlands Airport.
The deal sees the partial exit of Manchester-based private equity investor Palatine from the CET group.
Palatine said since it came on board in November 2018, revenues have grown by almost £12 million to £32 million, while its workforce has increased from 190 to more than 300 in the last 12 months.
With investment in CET’s technology platform, the number of claims it handles has grown by 40 per cent since Palatine’s investment.
Together CET and HomeServe serve 4.9 million homes, made up of 1.6 million HomeServe customers, 3 million policies served by CET and 300,000 customers served through HomeServe’s existing home emergency assistance arrangement with Aviva.
In the last year the two businesses completed 700,000 jobs, and have a combined network of around 4,000 directly employed and contractor engineers.
A spokesman said over time, there will be significant opportunities to share technology and service expertise between the businesses.
Ross Clemmow, chief executive for Europe, Middle East, and Africa at HomeServe, said: “CET has a leading market position and 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.”
HomeServe chief executive 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.”
Palatine said the exit had generated an “excellent return”, and it continues to have a stake in CTS –Construction Testing Solutions – which was formerly CET Group’s infrastructure testing division.
Richard Thomas, senior investment director at Palatine, said: “The CET team have done an excellent job in growing the business through digitalisation, employee engagement and operational improvement. It’s been a pleasure partnering with the team and we wish them all the best on the next phase of their growth with HomeServe.”
CET provides emergency plumbing, heating and electrics services to home insurance policy holders on behalf of leading consumer brands, via its digital claims handling and job management platform.
The acquisition of CET is a significant step forward in HomeServe’s strategy to broaden its UK business in home assistance cover, heating, ventilation, and air conditioning and home emergency assistance.
Palatine has its headquarters in Manchester with offices in Birmingham and London.