Centrica plc today announced that it has acquired Dyno-Rod, the UK’s leading on-demand drain maintenance specialist, and its related businesses, for a consideration of £57.6 million in cash.
Dyno-Rod will add to British Gas’ portfolio of home services and will help to support customer retention and drive cross-selling opportunities with new customers. Centrica’s Business Services arm is already exploring similar prospects in the commercial sector.
The combination will also provide operating synergies for British Gas which already has significant relationships with Dyno-Rod through its plumbing and drains product offerings.
Since the products were first introduced in 1999, British Gas has attracted 1.2 million contracted plumbing and drain cover customers, and will use this acquisition to increase its access to the on-demand market.
Dyno-Rod’s 2004 turnover is currently forecasted to be £13 million (derived from a franchisee turnover of £60 million) with a profit before tax of £6 million.
Mark Clare, Managing Director of British Gas said: “Dyno-Rod is a well-established and trusted brand which complements British Gas as a leading service provider in an on-demand plumbing and drains market-place worth in excess of £500 million per year.
“British Gas already helps to protect the homes of millions of customers with a wide range of contract products from central heating, kitchen appliance and home electrics care to plumbing and drains cover. This acquisition will give us better access to the 14 million private households who currently rely heavily on emergency call-out services.”
The Dyno-Rod group currently has 89 drains franchises covering the UK and Ireland plus an expanding network of 13 plumbing franchises. It also has 60 locks franchises, the UK's largest mobile emergency locksmith service, which has scope for further geographical franchise expansion nationwide.
Dyno-Rod employs 131 full-time staff at its Surbiton office, plus 12 staff co-located in British Gas’ Stockport office.