Simpson Thacher is representing Frontdoor Inc. in a newly inked deal to acquire 2-10 Home Buyers Warranty for $585 million in cash. The transaction, expected to close in Q4 2024, is poised to expand Frontdoor’s footprint in the home warranty market.
Frontdoor $585M Home Warranty Co Buy:Strategic Acquisition to Drive Growth
Frontdoor, based in Memphis, sees this acquisition as a significant growth catalyst. “I am optimistic that [the acquisition] will be a tremendous growth catalyst for our business and will help improve the trajectory of our customer base, revenue, and earnings,” said Frontdoor Chair and CEO Bill Cobb. The acquisition will allow Frontdoor to diversify into the new home segment, enhancing cross-selling opportunities for home warranties and on-demand services. “In short, through this acquisition, we will gain a highly complementary business that aligns very well with our strategic growth priorities,” Cobb added.
2-10 HBW: A New Home Warranty Leader
Denver-based 2-10 Home Buyers Warranty, a portfolio company of Genstar Capital, provides structural warranty protection plans for new homes. Genstar Capital acquired 2-10 HBW in late 2018. The company covers about one in five new homes built in the U.S. with structural warranties.
