Homeserve buys France's SFG

HOME insurance company Homeserve today said it had acquired French warranty group Societe Francaise Garantie (SFG) for £24m from France's April Group.

The purchase will see Homeserve, which provides cover for a range of household emergencies, expand its footprint in the European warranty market.

"This acquisition represents a very significant step forward in our plans to extend our successful UK warranty business to other European markets," York-based Homeserve chief executive Richard Harpin said in a statement.

SFG, which provides extended warranty services for electrical appliances, operates a network of subcontracted repair engineers throughout France and reported pretax profit of 3.3 million pounds for the year ending December 2008.