Direct Energy, an Ontario-based provider of repair and maintenance services for the residential market, has announced its intention to acquire the assets and business of Clockwork Home Services, Inc., Sarasota, Fla., for $183 million.
Clockwork Home Services owns a diverse array of franchise contracting businesses, including the Mr. Sparky electrical contracting franchise, One Hour Heating and Air Conditioning and Benjamin Franklin Plumbing. According to Entrepreneur magazine's 2010 listing of the 500 largest franchising businesses, Mr. Sparky was ranked #398 and had 83 franchises in the United States. Direct Energy Services and Clockwork Home Services will combine to become the largest provider of heating and cooling, plumbing and electrical services to more than three million households annually in North America.
In a press release announcing the acquisition, Eddy Collier, president, Direct Energy Services, said. “The combination of Direct Energy and Clockwork Home Services brings together two of the strongest and best home services businesses in North America to create the category leader with network revenues of almost $4 billion.”
The transaction, which remains subject to certain customary conditions including approval by regulators in the United States and Clockwork's shareholders, is expected to be completed in early Q3 of 2010. Direct Energy is a subsidiary of Centria, a huge utility based in the United Kingdom with approximately $32.2 billion in sales. Details