Reliance to Buy National Home Services in Canada
June 5, 2014
Reliance Comfort Limited Partnership has entered an agreement to purchase the shares of National Energy Corporation (which operates under the name National Home Services) for CDN 505 million from Just Energy Group, Inc. (TSX: JE; NYSE: JE), subject to the approval of the Competition Bureau of Canada.
Reliance owns a portfolio of heating, ventilation and air conditioning (HVAC) equipment primarily leased to customers in Ontario and western Canada. National Home Services is in the same business, with an HVAC rental portfolio primarily in the Greater Toronto Area in Ontario and in Quebec. National has a strong a strong distributor sales network. Reliance will continue to develop this network and will expand the rental products offered to National’s customers as well as to new customers across a wider Canadian geographic footprint.
Sean O’Brien, Reliance’s President and CEO stated, “This is good news for consumers. This merger will create a more competitive business that allows us to expand our product offering to new customers, continue to build our culture of excellence, and strengthen our customer service especially in the Greater Toronto Area and Quebec with National’s complementary portfolio.”
Just Energy Co-CEO, Deborah Merril stated, “We’ve found the perfect partner to take care of the home service needs of our customers. Reliance’s expertise will ensure that our customers get the excellent service and support that they’ve come to expect.”
Investment funds managed by Alinda Capital Partners own Reliance.
The acquisition closed on November 24, 2014.