Centrica's North American subsidiary, Direct Energy, has acquired the home protection plan business Home Warranty of America (HWA) for $48m (£30m) in cash.
The acquisition was made to enable Direct Energy to use it as a national platform to build and grow an extensive protection plan business in the US.
President and chief executive officer Chris WestonDirect Energy, said: "The protection plan market in North America is relatively immature. The addition of HWA provides Direct Energy with the capability to be the first national home services player that can offer dependable, peace of mind home cover delivered 24 hours a day through our highly trained technicians.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"This will accelerate Direct Energy's access to the US market and its huge growth potential. HWA also offers a strong fit with our strategic priority of creating an integrated North American business."
HWA has over 70,000 customers and a national network of 4,000 contractors.
NR
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
