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EnerCare Inc.’s battle to retain business in its core water-heater rental business appears to be paying off as the stock trades near a six-year high and some analysts call for more growth ahead.
EnerCare Inc.’s battle to retain business in its core water-heater rental business appears to be paying off as the stock trades near a six-year high and some analysts call for more growth ahead.
(Thinkstock)

EnerCare says takeover bid undervalues business

A possible $790-million dollar buyout for Canadian water heater giant EnerCare Inc. by its largest shareholder isn’t good enough, the company says.

Augustus Advisors LLC, the investment manager controlling a nearly 12-per-cent stake of the company, is leading an effort to acquire EnerCare’s business – a portfolio made up of 1.1 million water heaters and other devices installed in Ontario homes and rented to owners. Subsidiary EnerCare Connections Inc. also has metering contracts that measure electricity and water used in condos and apartments in Ontario, Alberta and other provinces.