Deal Bolsters Company's North American Home Energy Services Business
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 business.
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 www.directenergy.com.
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
|Starwood Waypoint Residential Trust Acquires Portfolio of 707 Single-Family Rental Homes for $144 Million (2014/3/4)|
|Twin Butte Energy to Acquire Private Oil Producer and Proceed With $70 Million Bought Deal Financing ()|
|Renewable Energy Group Formally Opens Mason City, IA Biodiesel Plant and Announces $20 Million Upgrade for the 30-Million Gallon Biorefinery ()|
|First Potomac Acquires Third Office Building At Redland Corporate Center For $30 Million (2013/10/7)|
|RGS Energy and Altus Power America Management Form RGS Energy Asset Management, a Joint Venture to Fund, Build and Manage up to $150 Million in Solar Projects (2014/2/4)|
|APR Energy Acquires General Electric's Power Rental Business for $314 Million ()|
|Aqua America Pennsylvania Subsidiary Acquires Bristol Township Water System ()|
|Primo Water Announces Results for the Third Quarter Ended September 30, 2013 and Strategic Alliance Agreement With DS Waters of America, Inc. ()|
|Nyack Hospital to Install More Than $1 Million in Energy and Water Conservation Measures from Constellation ()|
|Jones Energy, Inc. to Acquire Assets in the Anadarko Basin for $195 Million ()|
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Access Your Portfolio Anytime, Anywhere via Your Mobile Device|
|P||Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)|
|P||Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)|
|P||Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.