Insider Media Limited

Walsall-based HomeServe has bought the remaining stake in its France-based joint venture Doméo SA in a deal worth £83m.

The home emergency repair business said this morning (2 December) that it had reached an agreement with Veolia Environnement to acquire Veolia's 51 per cent share in the business.

Following completion of the transaction, which is expected within the next week, Doméo SA and its subsidiary Doméo Assistance SA will be solely owned by HomeServe.

HomeServe and Veolia have also agreed a long term marketing agreement providing Doméo with continued use of Veolia's brands in France.

Doméo SA provides insured home emergency policies in France with 890,000 customers and more than two million policies.

The aggregate profit after tax for Doméo SA and Doméo Assistance SA in the year ended 31 March 2011 was £11.3m.

A total of £83m wil be paid for the majority share, which will be paid in cash at completion and will be funded through existing bank facilities.

Richard Harpin, group chief executive of HomeServe, said: "HomeServe began its international expansion when the group entered France in 2001. I am delighted that, having set up the business organically, ten years ago, with Veolia, we now have the opportunity to make Doméo a wholly owned part of HomeServe.

"This agreement will also enable us to continue our important trading relationship with Veolia in France through our new long term marketing agreement in addition to our agreements in the UK and our testing with Veolia Aqua in Italy."