Deal expected to close in fourth quarter of 2004; CEO Eric Salzer and RSG's management team will remain in place
Direct Energy has agreed to acquire Residential Services Group, a plumbing and HVAC services provider for residential and light commercial markets, for a $150 million in cash. The deal is expected to close in the fourth quarter of 2004.
This will be the second acquisition of RSG since its split from Encompass Services Corp., which filed for Chapter 11 reorganization in 2002. In 2003 Dayton, Ohio-based RSG was purchased by Wellspring Capital Management where its "strong management team, market leadership and steady cash flow" gained the company 27 locations in 17 states.