Direct Energy Aquires Home Warranty of America
Direct Energy Services is acquiring Home Warranty of America (HWA), a US nation-wide home warranty protection plan company, for $48 million. In 2010, Direct Energy Services acquired 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 Clockwork network includes the One Hour Heating and Air Conditioning, Benjamin Franklin Plumbing and Mister Sparky brands.
This deal will eventually allow Direct Energy to sell protection plans in all 50 states, which means 100 million households will be able to use the benefits of the HWA. Based in Buffalo Grove, Illinois, HWA provides whole home warranty services directly to customers through a national network of real estate agents, insurance professionals, relocation companies, developers, title companies, bankers, home inspectors and mortgage brokers.
The warranty plans offer 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.
"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."
The transaction is subject to regulatory approval and customary closing conditions. It is expected to close during the first quarter of 2012.