British Gas has announced the further expansion of its new insulation business with the acquisition of Hillserve Ltd, a domestic insulation company serving the North West of England and Wales.

The deal, worth £5 million, represents another major step in British Gas' ambitions to build the country's leading insulation business, and help British Gas customers cut their energy use, their carbon emissions and their fuel bills.

British Gas was keen to acquire Hillserve, which employs 159 people, because of its technical know-how, expert staff and excellent reputation for customer care, which match British Gas' own high standards. The acquisition will allow British Gas to speed up the roll-out of its new insulation service, and help more customers sooner.

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Demand for home insulation is forecast to rise significantly in the next five years. Currently, £1 in every £4 spent on domestic energy is wasted because of poor insulation. Spending on home insulation is predicted to rise from around £0.6 billion a year in 2010 to £1.4 billion in 2015.

Phil Bentley, Managing Director, British Gas, said: "At British Gas, we are building the country's leading insulation business, reducing household carbon emissions, and helping our customers lower their energy bills.

"The insulation market is growing, and insulating homes is the cheapest way to reduce energy bills. Hillserve Ltd, like British Gas, has a real passion for great customer service, and we are delighted to have secured the skills of the Hillserve team."

(CD/GK)