Direct Energy Completes Acquisition of Home Warranty of America

Deal provides further platform for growth and profitability

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Mar 05, 2012, 01:44 ET

HOUSTON, March 5, 2012 /PRNewswire/ -- Direct Energy, one of North America's largest competitive energy and energy-related services providers, has finalized its acquisition of Home Warranty of America (HWA), a leading supplier of home protection plans across the United States.

The deal gives Direct Energy the licenses and operating capabilities in all 50 states to offer protection plans to millions of US households looking to protect their budgets against expensive breakdowns. This capability, together with the recently acquired operations of Clockwork Home Services, provides both service coverage and the ability to sell protection plans nationwide.

"Home Warranty of America makes us unique in that we can now provide competitively priced protection plans to our customers across the US home services market," said Eddy Collier, President of Direct Energy Services. "We can also service their needs directly through our strong consumer brands of One Hour, Benjamin Franklin and Mr Sparky, which build on the national network of HWA contractors already in place and providing excellent service."

In 2010, Direct Energy acquired Clockwork Home Services, establishing itself as the largest home services company offering HVAC, plumbing and electrical services across Canada and 46 U.S. states. By being a part of the entire value chain, from sourcing and supplying, to energy efficiency products and services, Direct Energy is able to provide its customers with stability and added value.

"Importantly, HWA also provides us with the systems and operations to offer protection plans and services to our residential energy customers," added Collier. "The potential for cross-sell opportunities further complements our North American strategy for growth."

About Direct Energy
Direct Energy is one of North America's largest energy and energy-related services provider 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

SOURCE Direct Energy