Direct Energy to Acquire Home Warranty of America

Continues Expansion of Home Services Offering

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Nov 11, 2011, 02:10 ET

TORONTO, Ontario, Nov. 11, 2011 /PRNewswire/ -- Direct Energy, North America's largest competitive energy and energy-related services company, has reached an agreement to acquire Home Warranty of America (HWA), a leading supplier of whole home protection plans across the United States. With this addition to its Services business, Direct Energy will leverage the scale of the HWA platform and its own expertise in operating a successful home protection plan business in Canada, to establish the premier energy and home services offering for residential customers in North America.

Headquartered in Buffalo Grove, Illinois, HWA provides whole home warranty services directly to customers and through a national network of real estate agents, insurance professionals, relocation companies, developers, title companies, bankers, home inspectors and mortgage brokers. With the necessary capabilities and licenses to operate in all 50 states, HWA's comprehensive service delivery network, enterprise software and call center will support Direct Energy's continued growth as North America's largest home energy service provider.

"The further expansion of our Services business is an essential component of our North American growth strategy," said Chris Weston, President and CEO of Direct Energy. "Direct Energy Services is already a leader in the Canadian home protection plan market, and the acquisition of HWA will accelerate Direct Energy's access to the US market and its huge growth potential."

In 2010, Direct Energy Services acquired Florida-based Clockwork Home Services to become the largest provider of heating, cooling, plumbing and electrical services, serving more than three million households annually in North America. The addition of HWA will complement Clockwork's existing business, enhancing its ability to offer protection plans to cover this substantial customer base. The Clockwork network includes the One Hour Heating and Air Conditioning, Benjamin Franklin Plumbing and Mister Sparky brands.

"Adding HWA's capabilities will position Direct Energy to become the first high quality national home services player offering dependable, peace of mind home protection. American homeowners will be able to rest easy knowing their major appliances are covered 24 hours a day," said Eddy Collier, President of Direct Energy Services. "What's more, the acquisition of an established nationwide home warranty provider brings infrastructure for significant cross-sell opportunities with our residential energy customer base."

"Direct Energy's commitment to providing the most comprehensive, flexible, value-priced services plans, delivering superior in-house customer service, and national footprint make them our ideal partner as we continue to grow our business," stated Marc Roth, President of HWA.

The transaction is subject to regulatory approval and customary closing conditions. It is expected to close during the first quarter of 2012.

About Direct Energy

Direct Energy is one of North America's largest energy and energy-related services providers with over 6 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.

About HWA

Home Warranty of America, Inc. of Buffalo Grove, IL, was founded in 1996 to provide home warranty coverage for houses, town homes, and condominiums. The Company has experienced remarkable growth to become a leading supplier of residential service contracts (home warranty) across the United States, and provides its services through real estate agents, insurance professionals, relocation companies, developers, title companies, bankers, and mortgage brokers. The Company also provides its comprehensive home warranties directly to the homeowner. It offers full coverage for every buyer without the home age restrictions that are common on competitor's products. Service is a convenient 24/7 toll-free call away and repairs are performed by qualified, approved technicians. The Company offers a 30-day, money back guarantee on every home warranty. More information is available at www.hwaHomeWarranty.com.

SOURCE Direct Energy