Frontdoor, Inc. announced on December 19, 2024, the completion of its acquisition of 2-10 Home Buyers Warranty, following all necessary regulatory approvals. The transaction was an all-cash purchase for $585 million, subject to customary adjustments.
This acquisition immediately expands Frontdoor’s customer base, revenue, and earnings, and diversifies its product portfolio into new home structural warranties. The integration of 2-10 HBW is expected to open new sales channels and cross-selling opportunities.
Concurrently, Frontdoor successfully priced its previously announced $1.47 billion credit facility. The proceeds from this facility were used to retire existing debt and fund the 2-10 Home Buyers Warranty acquisition, with remaining funds allocated for share repurchases and general corporate purposes.
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