Intact Financial Corporation announced Aug. 6 that it is acquiring On Side Restoration. The transaction is expected to close on or before Oct. 1, 2019 subject to certain conditions, including regulatory approval.
The deal was announced jointly with On Side Developments Ltd., the parent company of On Side Restoration – a national restoration firm based in Vancouver, with more than 1,200 employees and 35 branches across Canada.
Taking ownership in the supply chain
Intact says the move will deepen its claims expertise and strengthen its supply chain network.
"Our claims service is a key differentiator and is at the heart of what we promise. On Side Restoration is already an important part of our Rely Network of preferred vendors and they have a track record of providing excellent customer service and helping us deliver on that promise," said Charles Brindamour, Chief Executive Officer, Intact Financial Corporation. "By taking ownership in the supply chain and combining our strengths we can ensure simpler, faster and consistently higher quality outcomes for property claims customers. This transaction will reduce claims handling costs and provide diversification to our property exposures with a new and counter cyclical earnings stream," added Brindamour.
More frequent weather events
Intact says restoration services is a growing area of business, particularly as our communities are experiencing more frequent weather events. Intact will gain full ownership of On Side Restoration over a two-year period for a variable purchase consideration.