HomeServe Sold to LDC for £11 Million

HomeServe, a British household insurance group, has just reported a completed sale of its HomeServe Emergency Services division to LDC, Midlands-based private equity provider of the Lloyds Banking Group. The purchase of the HomeServe Emergency Services, which proved to be loss-making as it reported losses in the first 6 months of 2009, cost LDC £11 million. The buy-out of the unit came in the framework of LDC’s investment strategy, under which the company earlier placed more than £150 million in funding of other transactions. The acquired HomeServe Plc consists of 3 separate units: HomeServe Glass and Locks that specialises in glazing and locks, HomeServe Chem-Dry that specialises in restoration of properties after water, fire, flood, and accidental damage, and, finally, HomeServe Content Services that specialises in production of professional software for validation of content claims. The first two units have important contracts with leading UK insurers, and have a huge potential to diversify into the British commercial market. The LDC plans to rename HomeServe Emergency Services into Evander Group. The management of the new group will consist of Mr. Jonathan Simpson-Dent, Alan Horton (HGL managing director), Mark Taylor (HCD managing director), and Simon Hancox (HCS managing director). In the opinion of Mr. Jonathan Simpson-Dent, LDC is very glad with the buy-out of HomeServe as it has long-term sustainable relations with leading British insurers and has a huge development potential. The buy-out of HomeServe is not the only investment of LDC. Earlier this year, despite all the economic difficulties, the company has completed the purchase of Cranswick Pet & Aquatics and Nuclear Engineering Services Limited as well as of 8 licences of Midland Radio. The Homeserve deal was agreed with the help of such professional financial advisors as Roger Buckley, Mark Harrison, Satvir Bungar, Stoy Hayward, and others.