British Gas today announced the further expansion of its new insulation business with the acquisition of Hillserve Ltd, a leading domestic insulation company serving the North West of England and Wales.
The deal, worth £5 million, represents another major step in British Gas' ambitions to build the country's leading insulation business, and help British Gas customers cut their energy use, their carbon emissions and their fuel bills.
British Gas was keen to acquire Hillserve, which employs 159 people, because of its technical know-how, expert staff and excellent reputation for customer care, which match British Gas' own high standards. The acquisition will allow British Gas to speed up the roll-out of its new insulation service, and help more customers sooner.
Demand for home insulation is forecast to rise significantly in the next five years. Currently, £1 in every £4 spent on domestic energy is wasted because of poor insulation. Spending on home insulation is predicted to rise from around £0.6 billion a year in 2010 to £1.4 billion in 2015.
British Gas aims to be the leading supplier of domestic insulation, building on its existing leading position in the provision of energy efficiency and microgeneration products, offering customers complete energy solutions for their homes. In the next 18 months, British Gas' insulation business will employ 1,100 people.
Phil Bentley, Managing Director, British Gas, said:
"At British Gas, we are building the country's leading insulation business, reducing household carbon emissions, and helping our customers lower their energy bills.
"The insulation market is growing, and insulating homes is the cheapest way to reduce energy bills. Hillserve Ltd, like British Gas, has a real passion for great customer service, and we are delighted to have secured the skills of the Hillserve team."
Julie Hadfield, Managing Director, Hillserve, said:
"This is a great result for Hillserve, and is testament to the hard work and skill of all our people. It's great news for our customers as well as our staff who will be part of one of Britain's most successful companies.
"Hillserve was founded by my dad, Harry Hearsum, 25 years ago this week. We look forward to the next 25 years and beyond as part of British Gas."
Note to Editors
- £1 in every £4 spent on heating is wasted due to poor insulation
- Loft insulation can save £150 on the average annual fuel bill, and cavity insulation can save £115
- Last year, British Gas completed around 270,000 cavity wall and loft insulations
- In 2009, the total monetary savings on energy bills made by British Gas customers as a result of insulation totalled £30 million
- With a quarter of CO2 emissions in the UK coming from homes, demand for energy efficiency products and services is rising rapidly
- Insulation gives homes a better energy efficiency rating, which can increase their value
- Insulation helps keep homes cooler during the summer months
- Cavity wall insulation is done from the outside of the home, so there's no mess inside during installation
- Loft insulation should be 10cm deep to stop the heat from escaping
- British Gas customers receiving income or disability-related benefits, or aged 70 or over, can have their homes insulated for free
- Hillserve is being acquired by Centrica plc through its subsidiary GB Gas Holdings Ltd for a cash consideration of £5 million plus an adjustment for net cash within the business of around £1.3 million
- Last year, Hillserve completed around 40,000 insulation installations
British Gas Media Relations 0845 072 8002