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Direct Energy sells its Ontario home and small commerical services business to Enercare for C$550 million

Date Closed

October 20, 2014

Lead Office



550.00 Million CAD

On July 24, 2014, EnerCare Inc. and EnerCare Solutions Inc. ("EnerCare Solutions" and with EnerCare, the "Company") announced that the Company has entered into a definitive asset purchase agreement to purchase the Ontario home and small commercial services ("OHCS") business of Direct Energy Marketing Limited ("Direct Energy"), a wholly-owned subsidiary of Centrica plc, for a purchase price of C$550 million.

In May 2002 Centrica, through Direct Energy, acquired Enbridge Services Inc. and its Canadian home and business services operations, which included what is now the Company's water heater rental program. In December 2002, EnerCare (formerly The Consumers' Waterheater Income Fund) completed its initial public offering and purchased the water heaters and other assets from Direct Energy and entered into a co-ownership agreement and 20-year origination agreement with Direct Energy relating to the servicing and origination of the Company's rental portfolio.

EnerCare, headquartered in Toronto, Ontario, is one of Canada's leading providers of energy conservation products and services.

Direct Energy, headquartered in Houston, Texas, is a North American retailer of energy and energy services.

McCarthy Tétrault LLP represented Direct Energy, as seller, with a team led by David Woollcombe.