TORONTO, June 5, 2014 /CNW/ - Reliance Comfort Limited Partnership (Reliance Home Comfort or Reliance), has entered an agreement to purchase the shares of National Energy Corporation (which operates under the name National Home Services) for $505 million from Just Energy Group, Inc. (TSX: JE; NYSE: JE), subject to the approval of the federal Competition Bureau.
Reliance Home Comfort sells and rents heating, ventilation, air conditioners (HVAC) equipment, primarily in Ontario and western Canada. National Home Services will complement Reliance's existing portfolio while creating opportunities for Reliance to strengthen its customer service offering and expand products offered to National's current customers and potential new customers across a wider Canadian geographic footprint.
National Home Services has a solid customer portfolio primarily based in Ontario and Quebec with a strong distributor presence, which has built a meaningful portfolio over the past six years. Following closing of the transaction, Reliance will continue to develop this sales network to drive growth in an increasingly competitive and evolving marketplace.
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 GTA and Quebec with National's complementary portfolio. "
Just Energy Co-CEO, Deb 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".
About Reliance:
Reliance is the destination of choice for Canadians seeking warmth in the winter, cool in the summer and an endless supply of hot water. Reliance is a Canadian company with its head office in Toronto and employs approximately 1100 people. Reliance offers two core product areas to its over 1.6 million residential and commercial customers: Heating, Ventilation, Air Conditioning (HVAC) and Security Services. Reliance Home Comfort provides retail sale, rental, service and maintenance of heating, ventilation and air conditioning equipment. Visit www.reliancehomecomfort.com to learn more.
SOURCE: Reliance Home Comfort
Media contacts: Linda Smith (416) 457-1814, Brent Artemchuk (416) 499-8654
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