This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Direct Energy Closes On AWHR For $30 Million

HOUSTON, Oct. 11, 2013 /PRNewswire/ --  Direct Energy, one of North America's largest competitive energy and energy-related services companies, has closed the purchase of AWHR from MWHR, a U.S. based investment entity, for $30 million in cash plus working capital.

(Logo: http://photos.prnewswire.com/prnh/20121004/MM87276LOGO)

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. This deal 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: "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 comprehensive home services options."

About Direct EnergyDirect 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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs