News
Homeserve Acquires Chem-Dry
14th April 2005
Homeserve plc, the home emergency company, today announces the expansion of its disaster restoration activities with the acquisition of Chem Dry UK Limited and its related businesses including Concept Document Restoration (“Chem-Dry”) for a cash consideration, payable on completion of £18.9 million on a debt free basis.
Chem-Dry is one of the UK’s leading franchised fire and flood disaster restoration businesses and carpet and upholstery cleaning networks. It currently has over 230 franchisees covering the UK with over 640 licences and has commercial arrangements with seven leading household insurers. The business has 210 employees and operates from a national control centre in Beverley, East Yorkshire.
For the year ended 30th April 2004, the audited accounts for Chem-Dry reported an operating profit of £2.6 million on turnover of £37.1 million. Net assets at completion are estimated to be £4.8 million.
Chem-Dry’s market leadership in the domestic insured market for disaster restoration activities will enable Homeserve to broaden its services to insurers. The acquisition of Chem-Dry places Homeserve in a strong position to offer a complete solution to insurers commencing with emergency repairs at Home Hotline through to permanent repairs by the recently acquired Sergon network. Chem-Dry will benefit from Homeserve’s strong relationships with its existing insurance customers which will enable synergies to be maximised.
Richard Harpin, Chief Executive of Homeserve commented:
“The acquisition of Chem-Dry is a significant enhancement of our disaster restoration activities. It will broaden the services provided by Homeserve to household insurers and places Homeserve in a unique position to offer a fully integrated service to insurance companies.”