Direct Energy to sell its franchisee home services business, Clockwork
Direct Energy, one of North America’s largest energy and services companies and a subsidiary of Centrica plc, is selling Clockwork, and certain of its affiliates (“Clockwork”) to Authority Brands, a home services franchise platform backed by funds advised by Apax Partners for $300 million. Clockwork consists of over 725 franchise territories, and 10 company-owned stores, and brands including One Hour Heating & Air Conditioning®, Benjamin Franklin Plumbing®, Mister Sparky® electric, BuyMax, Success Academy and SuccessWare 21.
Direct Energy acquired Clockwork in 2010 for $183 million. Since then, awareness of the home services brands, One Hour, Benjamin Franklin and Mister Sparky has grown in North America. However, Centrica’s consumer strategy has evolved, with an increased focus on developing ongoing customer relationships through home protection plans and home warranty offers, and on developing its own home services brands and driving simplification and focus in the scope of services it delivers to customers. The sale price represents an attractive multiple of Clockwork’s 2018 EBITDA.