Yesterday, Direct Energy, one of North America's largest energy and services companies and a subsidiary of Centrica plc, successfully completed the $300 million sale of Clockwork, Inc. and certain of its affiliates ("Clockwork") to Authority Brands, a home services franchise platform backed by funds advised by Apax Partners.
Clockwork consists of over 725 franchise territories, and 10 company-owned locations, and brands including One Hour Heating & Air Conditioning® (One Hour), Benjamin Franklin Plumbing® (Benjamin Franklin), Mister Sparky® electric, BuyMax, Success Academy and SuccessWare 21.
Direct Energy acquired Clockwork in 2010 for $183 million. The sale price represents an attractive multiple of Clockwork's 2018 EBITDA.
"This sale reflects a company goal to simplify our channels to customers. We remain focused on offering multiple home services to our customers, continuing to deliver growth for Direct Energy through both energy and home services and expanding our home protection plans and home warranty offers," said Bruce Stewart, President of Direct Energy Home North America. "Authority Brands is a good home for Clockwork, the franchise owners and customers."
"Clockwork has been a good business for Centrica since its acquisition in 2010," said Sarwjit Sambhi, Chief Executive, Centrica Consumer. "The sale of the Clockwork portfolio is aligned with our intention to drive channel and brand rationalisation across the Group, with a continued focus on efficiency, effectiveness, quality and simplification. I am pleased we have found a good home in Authority Brands and wish the Clockwork business and its franchisees the best for the future."