The founder of Pimlico Plumbers Charlie Mullins is to relinquish his 90% stake in the group in a deal thought to be worth between £125 million and £145million, according to the Financial Times.
Scott Mullins, the son of entrepreneur, will retain a stake of about 10%, and remain Chief Executive.
Rumours of the deal had recently been reported by Sky News. Neighborly, a US-based provider of home services, itself owned by private equity firm KKR, was seen as one of a number of potential buyers reportedly interested in buying the 42-year-old business.
Earlier this year it was suggested that Pimlico Plumbers Founder and CEO Charlie Mullins had hired Cavendish Corporate Finance to help identify new investors and was likely to receive around £100 million for his business.
Neighborly, which moved from one equity-firm owner to another only two months ago, owns several home services franchises, including Mr Appliance and HouseMaster.
Pimlico Plumbers currently has more than 300 tradespeople operating across central and greater London, and a support team based in its campus of buildings in Lambeth, South London. It also has around 70 apprentices in both trade and office-based roles.
"We had various people who wanted to buy the business, and interest from all over the world, including France, America, and somewhere in the Middle East," Mullins told the BBC. "Covid helped to lift the company to another level, it now needs to go international."
"The business will always be something I will cherish. It has been a lifetime of work, and what it has achieved is remarkable. Neighborly will take that to the next level."
Mullins plans to use some of the proceeds from the sale to invest in music promotion and overseas property.
Mike Bidwell, President of Neighborly, said: "We are thrilled to be growing our global footprint with the addition of Pimlico as the next subsidiary brand to join our global family of home service professionals.
"Pimlico's wide array of trade services as well as its exceptional customer care perfectly align with Neighborly's purpose, which is to build an extensive service community known for providing excellent experiences."
If you'd like to keep up-to-date with the latest developments in the heating and plumbing industry, why not subscribe to our weekly newsletters? Just click the button below and you can ensure all the latest industry news and new product information lands in your inbox every week.