Homeserve boycott boss Richard Harpin has raised £ 300m when Canadian contenders target a £ 4bn home remodeling firm

The former Boy Scout is set to receive £ 300 million when Canadian contenders close the emergency home repair business he founded.

Richard Harpin, head of the Homeserve FTSE 250 group, which repairs leaky pipes and faulty boilers, will receive a huge sum if it is acquired by Brookfield Asset Management from Toronto.

The deal is expected to be close, the company estimates at just over £ 4 billion, making it one of the UK’s biggest private acquisitions this year.

Payout: Richard Harpin (pictured) is the founder of Homeserve and the second-largest shareholder with a 7.4% stake, leaving him in line for £ 300 million if the takeover is signed

The price list will estimate each share of Homeserve at around 1,200 pensions, which, although an increase to the current level, is below the historical maximum of 1,365 pence, which was reached in August 2020.

Shares of Homeserve rose 13.5 percent yesterday, or 131 points, to 1,105 pensions.

The final details of the agreement are being worked out and may be announced in the coming days, according to Bloomberg. However, discussions are still ongoing.

Brookfield has until 5pm next Thursday to make a firm offer after the deadline was extended last month to give more time for talks.

Harpin, 57, is Homeserve’s second-largest shareholder with a 7.4 per cent stake, leaving him in the queue for £ 300 million.

The Sunday Times Rich List estimates he has a fortune of £ 627 million. His wife Catherine will receive about £ 193 million from a 4.8 per cent stake.

Linking the property to £ 4 billion

Real estate group FTSE 250 has pounced on a smaller competitor as consolidation in the sector is gaining momentum.

The mid-cap LXi Real Estate Investment Trust, which owns a portfolio including hotels, parking lots and nursing homes, will merge with Secure Income REIT, which is on the AIM list, as part of a full-share deal.

Safe investors will receive 3.3 shares of LXi for every share they own, and the deal is valued at just under £ 1.5 billion.

Tying creates a company with assets worth £ 3.9 billion.

LXi investors will own 53 percent of the group, and Secure will control the remaining 47 percent.

Shares of Secure rose 8.8 percent, or 36 pence, to 447 pence. The LXi fell 3.7 percent, or 5.2 points, to 137 points.

After involvement in several businesses, including the sale of fishing tackle and jewelry, Harpin created Homeserve in 1993 with Jeremy Middleton, whom he met while working in the marketing department of consumer goods giant Procter & Gamble.

The father of three became known for his unusual style of traveling from his home near York to the company’s 140-mile offices in Walsall, which included switching between a chauffeur-driven car and his helicopter.

He also maintained ties with Scouting, becoming the association’s ambassador in 2010 and has donated £ 50,000 to help create an entrepreneurial badge to encourage interest in the business.

Brookfield’s interest was revealed in March when she announced she was considering a proposal.

Homeserve provides repair and maintenance services in the UK, US and Europe, and assists in the installation of heating, electrical and plumbing systems.

It also offers insurance products and owns the Checkatrade website, which connects households with local merchants.

During the pandemic, businesses flourished as people spent more time at home due to blocking measures.

In the six months to the end of September 2021, the company had a profit of £ 18.9 million, an increase of 86 per cent over the same period last year as it continued to benefit from strong demand.

Contact Homeserve for comment.


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