Centrica's Direct Energy To Acquire Clockwork In $183M Deal

10th Jun 2010 10:36

LONDON (Dow Jones)--U.K. utility Centrica PLC (CNA.LN) said Thursday that its North American subsidiary Direct Energy is acquiring home services business Clockwork Home Services Inc. for $183 million in cash, including assumed debt. The deal will make Direct Energy a market leader in the North American home energy services market and will strengthen the scale and capability of its operations, Centrica said. The acquisition also underscores Centrica's strategy, set out in February, to build a larger and more vertically integrated energy business in North America that is expected to double operating profits over the next five years. "This transaction is a step change for Direct Energy's services business, creating a market leader with an excellent franchise model," said Centrica Chief Executive Sam Laidlaw. Florida-based Clockwork is one of the largest home services businesses in North America and provides on-demand services to around 1 million households annually across 47 U.S. states and two Canadian provinces. It has around 1,000 employees, supplying heating, cooling, plumbing and electrical services through its wholly owned retail operations, and also has franchise operations and an affinity program for independent contractors. Centrica's Direct Energy is the largest residential supplier of energy in competitive markets with 3 million customers and the third largest supplier of energy to business customers. It has 400 billion cubic feet of gas reserves in Alberta, and three gas-fired power stations in Texas with a total capacity of 1,260 megawatts. An analyst said the acquisition should be positive for Centrica shares as it will make Direct Energy a market leader in the North American homes energy services market. It also shows Centrica is following the same strategy it employed in U.K. where it has successfully built up its gas and electricity supply portfolio. The acquisition is subject to certain customary conditions including approvals by Clockwork's shareholders and regulators in the U.S. and is expected to be completed in July 2010. At 0924 GMT, Centrica shares were up 1% at 280.70 pence, outperforming the broader market. Company website: http://www.centrica.co.uk -By Selina Williams, Dow Jones Newswires +44 207 842 9262; [email protected] (Andrea Tryphonides contributed to this story.) -0- (MORE TO FOLLOW) Dow Jones Newswires June 10, 2010 05:36 ET (09:36 GMT)