Frontdoor to acquire 2-10 Home Buyers Warranty for $585M in cash

Frontdoor announced it has entered into an agreement to acquire 2-10 Home Buyers Warranty or 2-10 HBW, in an all cash transaction valued at $585 M. The transaction is anticipated to close in the fourth quarter of 2024, subject to regulatory approval and other customary closing conditions. “We are extremely excited about the 2-10 acquisition. I am optimistic that it will be a tremendous growth catalyst for our business and will help improve the trajectory of our customer base, revenue and earnings,” said Frontdoor. Chairman and CEO Bill Cobb. “Additionally, we will be able to diversify and expand into the new home segment, which will open up cross-selling opportunities for home warranties and our on-demand services. In short, through this acquisition, we will gain a highly complementary business that aligns very well with our strategic growth priorities.” …The combined company’s strengthened financial profile is expected to be additive to Adjusted EBITDA and free cash flow generation in 2025, the first anticipated full year of ownership by FrontdoorThe transaction is valued at $585M in cash, on a cash-free, debt-free basis , and is supported by a fully committed bridge facility and cash. Permanent financing is expected to consist primarily of new debt. The transaction is anticipated to close in the fourth quarter of 2024, and is subject to customary closing conditions, including required regulatory approvals. The transaction has been unanimously approved by the Board of Directors of Frontdoor…