Authority Brands, a portfolio company of Apax Partners, said Feb. 21 that it acquired Clockwork Inc from Direct Energy Group, a unit of Centrica. Financial terms weren’t announced. Clockwork provides home services through brands Benjamin Franklin Plumbing, Mister Sparky® electric, and One Hour Heating & Air Conditioning.
Authority Brands welcomes the Clockwork brands into its family
· Addition doubles Authority Brands’ overall system revenue to over $1 billion
New York and Columbia, Maryland, February 21, 2019 – Authority Brands, a leading home services franchising platform backed by funds advised by Apax Partners, announced today the acquisition of Clockwork, Inc., and certain of its affiliates (“Clockwork”) from Direct Energy Group, a subsidiary of Centrica plc. The transaction is expected to close in the first half of 2019. The acquisition is the third home services add-on for Authority Brands since the company was acquired by funds advised by Apax Partners in September 2018.
Established in 1999, Clockwork delivers critical home services through three leading plumbing, electrical, and heating, ventilation and air-conditioning (“HVAC”) providers across the United States. Its household-name brands – Benjamin Franklin Plumbing® (“Benjamin Franklin”), Mister Sparky® electric, and One Hour Heating & Air Conditioning® (“One Hour”) – are all rated among the best-in-class in their respective categories.
Authority Brands is the parent company to leading home services brands The Cleaning Authority, Homewatch CareGivers, America’s Swimming Pool Company and Mosquito Squad which operate across the residential cleaning, at-home care, swimming pool repair and maintenance, and pest control services sectors respectively. Authority Brands supports individual franchisee growth by providing strong marketing, technology and operational support.
Rob Weddle, CEO of Authority Brands, said: “The addition of the Clockwork group of brands is an important and significant step in the evolution of Authority Brands. All three brands are market-leading franchises within their respective industries and their addition to our portfolio doubles our overall system revenue to over $1 billion. This scale allows us to further strengthen each of our brand’s systems and continue down the path of becoming the home services franchisor of choice for both business owners and consumers.”
Ashish Karandikar, Partner at Apax Partners, said: “We are delighted to support Authority Brands in this transformational acquisition. The Clockwork brands operate in attractive markets and will bring scale and diversification to Authority Brands’ platform. We anticipate substantial benefits for both businesses from cross-selling and collaboration across marketing, technology and operational support.”
Bruce Stewart, president of Direct Energy Home North America said: “The decision for this sale reflects our goals to focus and simplify our channels to customers and to own our own brands. Authority Brands is a good home for Clockwork and the franchise owners and customers will see no difference in our service delivery as we conclude this transaction.”
About Authority Brands
Headquartered in Columbia, Maryland, Authority Brands, LLC is the parent company of four leading home service franchisors, The Cleaning Authority, Homewatch CareGivers, America’s Swimming Pool Company and Mosquito Squad. Together, these brands provide recurring home services through more than 550 franchise locations in the U.S., Canada, Latin America, Kenya and Indonesia. Authority Brands is dedicated to supporting individual franchisee growth through providing strong marketing, technology and operational support.
About Apax Partners
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of c.$50 billion. The Apax Funds invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com.