HOUSTON — Direct Energy, one of North America’s largest energy and energy-related services companies, has agreed to acquire AWHR America’s Water Heater Rentals L.L.C. from MWHR, a U.S. based investment entity, for $30 million in cash plus working capital.

Headquartered in Canonsburg, Pa., AWHR is one of the largest independent water heater rental businesses in the United States and provides rentals, as well as related repair and maintenance services, to 80,000 residential customers located principally in the Midwest, Northeast, and Florida. Direct Energy is a leading provider of water heater rental services in Ontario, Canada, where it currently has 1.1 million customers.

Direct Energy said the acquisition provides it 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 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 three to five years.”

In 2010, Direct Energy acquired Florida-based Clockwork Home Services. The Clockwork network includes the One Hour Heating & Air Conditioning®, Benjamin Franklin Plumbing®, and Mister Sparky® brands. In 2012, Direct Energy acquired Home Warranty of America, a leading supplier of whole home protection plans across the U.S., to complement its energy and services business.

“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.

For more information about Direct Energy, visit www.directenergy.com. For more information about AWHR, visit www.awhr.com.

Publication date: 9/16/2013

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