Direct Energy To Acquire AWHR America's Water Heater Rentals, L.L.C. For $30
Deal Bolsters Company's North American Home Energy Services Business
HOUSTON, Sept. 5, 2013
HOUSTON, Sept. 5, 2013 /PRNewswire/ --Direct Energy, one of North America's
largest competitive energy and energy-related services companies, has agreed
to acquire AWHR America's Water Heater Rentals, L.L.C. ("AWHR") from MWHR, a
U.S. based investment entity, for $30 million in cash plus working capital.
Headquartered in Canonsburg, Pennsylvania, AWHR is the largest independent
water heater rental business in the U.S. and provides rentals, as well as
related repair and maintenance services, to 80,000 residential customers
located principally in the Midwest, Florida and U.S. Northeast. Direct Energy
is a leading provider of water heater rental services in Ontario, Canada,
where it currently has 1.1 million customers.
The AWHR business model, customer footprint and operations have a strong
overlap with Direct Energy's existing services business. The acquisition
provides Direct Energy Services with an expanded product range and the
opportunity to grow its customer base further in the U.S. - offering water
heater and HVAC rental and leasing alongside heating, air conditioning,
plumbing and electrical services across its growing North American franchise
Badar Khan, president and CEO of Direct Energy, said: "The acquisition of AWHR
presents us with a unique opportunity to grow Direct Energy's customer base
through a combination with our existing home services operations and expertise
in water heater rental services. We will also benefit from operational
efficiencies and expanded capabilities, as we seek continued growth in North
America with the aim of doubling the profitability of Direct Energy's North
American downstream business over the next 3-5 years."
In 2010, Direct Energy acquired Florida-based Clockwork Home Services to
become the largest provider of heating, cooling, plumbing and electrical
services in North America, serving more than three million residential
customers annually. The Clockwork network includes the Benjamin Franklin
Plumbing®, Mister Sparky®, and One Hour Heating & Air Conditioning® brands.
Direct Energy acquired Home Warranty of America, a leading supplier of whole
home protection plans across the U.S., in 2012 to complement its existing
energy and services business and enhance its ability to offer comprehensive
protection plans to customers.
"As the leader in U.S. energy and services, we are excited to add AWHR's
capabilities to our already broad suite of home services and solutions," said
Scott Boose, president of Direct Energy Services. "This deal will
significantly bolster our services offering and ability to provide customers
across the U.S. with more competitive home services options."
The transaction is expected to close this year.
About Direct Energy
Direct Energy is one of North America's largest energy and energy-related
services providers with over six million residential and commercial customer
relationships. Direct Energy provides customers with choice and support in
managing their energy costs through a portfolio of innovative products and
services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading
integrated energy companies, Direct Energy operates in 46 states plus DC and
10 provinces in Canada. To learn more about Direct Energy, please visit
AWHR is America's full‐service appliance rental service company, specializing
in the rental of water heaters and home appliances with no deductibles or
service fees. AWHR is committed to making high‐quality appliances available to
everyone. For more information, visit www.awhr.com.
SOURCE Direct Energy
Contact: Bethany Ruhe, Direct Energy, +1-412-667-5616,
firstname.lastname@example.org, or Micah Hirschfield, Direct Energy,
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