SARASOTA, FL- Direct Energy, one of North America's leading integrated energy and services companies and a subsidiary of Centrica plc, has announced its intention to acquire the assets and business of Clockwork Home Services, Inc. for US$183 million.
Direct Energy Services and Clockwork Home Services will combine to become the largest provider of heating & cooling, plumbing and electrical services to more than three million households annually in North America. Together, the new organization, with overall network revenues, including independent franchise and affinity clients, of almost $4 billion, will leverage its scale and combined expertise to redefine the customer experience and improve value for North American homeowners.
"The addition of Clockwork Home Services to our Services business helps deliver on Direct Energy's growth strategy of being North America's leading integrated energy and services company," noted Chris Weston, President and CEO, Direct Energy. "This acquisition will also allow us to increase the proportion of households that Direct Energy serves where we can offer both services and energy supply from 30% to 55%, with the opportunity to increase our integrated offerings through new Clockwork franchises."
The combined organization will operate in almost every US state and Canadian province providing repair and maintenance services to customers' heating and cooling systems as well as energy efficiency related services to both homes and businesses. Clockwork's strong brands, customer service and industry leading customer management systems complement Direct Energy Services' strong maintenance and service plan product offering and market leadership in Canada. The new organization will also focus on obtaining state, provincial and federal energy efficiency funding that is widely available to help make North American homes more energy efficient.
"The combination of Direct Energy and Clockwork Home Services brings together two of the strongest and best home services businesses in North America to create the category leader with network revenues of almost $4 billion. With our size and coverage across virtually every US state and Canadian province, we will transform the home services industry to bring homeowners' exceptional customer service and value," said Eddy Collier, President, Direct Energy Services.
One Hour Heating and Air Conditioning, Benjamin Franklin Plumbing and Mister Sparky franchisees and owned operations and Clockwork's affinity clients will benefit from Direct Energy's experience in the home services industry as well as the financial support and UK energy services market expertise of its parent company, Centrica plc. "Direct Energy's five million customer relationships in North America and access to capital markets is critical to ensure the continued growth and investment in Clockwork's highly-successful brands and franchises," said Jim Abrams, CEO, Clockwork Home Services. "I am committed to personally ensuring a cornerstone of the combined organization continues to be helping owned-operations, franchises and affinity clients rapidly expand their businesses."
To further build North American awareness of One Hour Heating and Air Conditioning, Benjamin Franklin Plumbing and Mister Sparky, Clockwork appeared on NBC's Celebrity Apprentice with Donald Trump on May 2nd. Celebrating its appearance, Clockwork is currently running a sweepstakes called "Trump Time is Money" at www.win100grand.com as well as a national advertising campaign.
The transaction, which remains subject to certain customary conditions including approval by regulators in the United States and Clockwork's shareholders, is expected to be completed in early Q3 of 2010.
About Clockwork Home Services
Clockwork Home Services, Inc. is dedicated to improving the operations, efficiency, customer service and profitability of contractors in the home services industry in North America through affinity group membership and nationally branded franchises. Its companies include Mister Sparky® Franchising, Benjamin Franklin Plumbing® Franchising, One Hour Air Conditioning & Heating® Franchising, BuyMax®, Plumbers' Success International®, Electricians' Success International®, AirTime 500TM, Roofers' Success International®, Success Academy®, AirTime CanadaTM ULC, SuccessWare, Inc.® and company-owned One Hour® operations in California, Colorado, Florida, Georgia, Indiana, Minnesota, Nevada, Ohio, Oklahoma, South Carolina, Tennessee and throughout Canada; company-owned Benjamin Franklin Plumbing® operations in Colorado, Indiana, and Minnesota; and company-owned Mister Sparky® operations in Colorado, Georgia, Indiana, Nevada, and Minnesota. For the third consecutive year, in 2009, Clockwork was ranked on Inc. magazine's Inc. 5,000® list of fastest-growing private companies in the United States. For more information, visit http://www.clockworkhomeservices.com.
About Direct Energy
Direct Energy is one of North America's largest energy and energy-related services providers with over 5 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 20 states plus DC and 10 provinces in Canada. To learn more about Direct Energy, please visit www.directenergy.com.
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Notes to Editors:
The North American home services market is defined as the residential heating and cooling, electrical service and plumbing industries.