March 7 (Reuters) - Canadian home services provider Enercare Inc said its unit agreed to buy U.S-based SEHAC Holdings Corp (Service Experts Heating & Air Conditioning) for $340.8 million, excluding transaction costs, to expand in North America.
Dallas-based Service Experts, which provides services in 29 U.S. states and three Canadian provinces, is one of North America’s largest heating and air conditioning companies.
Service Experts focuses on service and replacements, getting about 95 percent of its revenue from these segments, Enercare said on Monday.
Enercare expects the deal - likely to close in the second quarter - to add to normalized pro forma distributable cash per common share by 25 percent in 2016.
The company said it would finance part of the deal with a C$218 million ($164.1 million) bought deal and the rest through a committed term loan from unit Enercare Solutions Inc’s existing lenders.
National Bank Financial was financial adviser to Enercare, and Moelis & Co LLC to Service Experts. ($1 = 1.33 Canadian dollars)
Reporting by Kanika Sikka in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila