Direct Energy Makes Another Acquisition to Further Integrated Service Offerings

Direct Energy has agreed to acquire AWHR America’s Water Heater Rentals, L.L.C. from MWHR, a U.S. based investment entity, for $30 million in cash plus working capital.

Direct Energy said that AWHR, which is headquartered in Canonsburg, Pennsylvania, is the largest independent water heater rental business in the U.S. and provides rentals, as well as related repair and maintenance services, to 80,000 residential customers located principally in the Midwest, Florida and U.S. Northeast.

Direct Energy current provides water heater rental services in Ontario, Canada, where it currently has 1.1 million customers.

Direct Energy said that the AWHR business model, customer footprint and operations have a strong overlap with Direct Energy's existing services business. "The acquisition provides Direct Energy Services with an expanded product range and the opportunity to grow its customer base further in the U.S. - offering water heater and HVAC rental and leasing alongside heating, air conditioning, plumbing and electrical services across its growing North American franchise business," the company said.

Badar Khan, president and CEO of Direct Energy, said: "The acquisition of AWHR presents us with a unique opportunity to grow Direct Energy's customer base through a combination with our existing home services operations and expertise in water heater rental services. We will also benefit from operational efficiencies and expanded capabilities, as we seek continued growth in North America with the aim of doubling the profitability of Direct Energy’s North American downstream business over the next 3-5 years."