Homeserve Sells Policy Book to Piedmont for $22 Million

By Xavier Fontdegloria

Homeserve PLC said that its U.S. subsidiary has entered into an agreement to sell to Piedmont Natural Gas Company Inc. the book of policies built during the two companies' partnership, which will end in April, for around $22 million.

The home-repairs business said the sale is in response to Piedmont's acquisition by Duke Energy Corp.

Homeserve said it intends to invest the proceeds from the transaction into additional organic marketing activity across its other partnerships, and that it doesn't expect any material impact on customer or policy numbers, profit or net cash position as a result of this transaction.

"By the end of fiscal year 2023 we expect to replace the customers we lose from this transaction by re-investing the sale proceeds in organic marketing," Chief Executive Tom Rusin said.

Write to Xavier Fontdegloria at [e-mail]

(END) Dow Jones Newswires

12-13-21 0339ET