Brookfield Asset Management has agreed to buy emergency home repair services outfit HomeServe for just over £4 billion (around $5 billion) in the UK's largest PE-backed take-private deal so far this year.
The agreement comes after a record year for private takeovers. According to PitchBook data, 2021 saw 15 PE-backed take-privates in the UK worth a total of £25 billion. This year, three deals, worth a combined £1.4 billion, have closed.
Some recent deals have come under scrutiny from competition watchdogs, including Clayton, Dubilier & Rice's buyout of UK supermarket chain Morrisons and the acquisition of defense contractor Ultra Electronics by Advent International-controlled Cobham.
While take-private activity has been relatively muted this year, more companies are considering going private as valuation take a hit amid an unforgiving macroeconomic environment. HomeServe's price tag is more than double that of the next largest UK take-private this year: Triton's £1.3 billion buyout of Clinigen Group, a specialist pharmaceutical service company, in April.
The offer represents a 71% premium to HomeServe's last closing price March 23, before the start of the offer period began. HomeServe's shares were up 11% in early trading May 19, when the deal was accepted.
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This article originally appeared on PitchBook News
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Brookfield's $5B HomeServe deal marks largest UK take-private this year
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