Select Energy Management M&A Transactions

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White Deer Energy Announced the Acquisition of Renewable Energy Infrastructure Group’s Electric Vehicle Infrastructure Design-build Business

  • EV Infrastructure is a leading provider of electric vehicle infrastructure engineering and construction services, primarily to commercial fleet operators. Founded in 2012, the Company is focused on the engineering and construction of level 2 and level 3 high-power, fast-charging stations, which typically serve utility, commercial and municipal applications.
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Therma to be Acquired by Blackstone Energy Partners from Gemspring Capital

  • Gemspring Capital announced that private equity funds managed by Blackstone Energy Partners have entered into a definitive agreement to acquire one of Gemspring’s portfolio companies, Therma Holdings, LLC. Therma is a leading specialty mechanical, electrical and controls services company focused on designing, building, and servicing complex systems in mission-critical facilities.
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Bow River Capital Completes Sale of Veregy to Court Square Capital

  • Veregy, a technology-forward, leading independent energy services company (“ESCO”) that offers energy efficiency solutions and smart building technologies, has partnered with Court Square Capital. With over 500 employees operating across the country, including more than 50 professional engineers, Veregy has the technical expertise to address customers’ most complex challenges. Veregy has optimized thousands of buildings and generated billions of dollars in real savings for its clients. Harris Williams served as the exclusive advisor to Veregy.
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Service Logic announces acquisition by Leonard Green & Partners from Warburg Pincus

  • Service Logic, the largest independent provider of aftermarket maintenance, repair and replacement services for commercial HVAC equipment, announced that it has been acquired by Leonard Green & Partners from Warburg Pincus. Headquartered in Charlotte, North Carolina, Service Logic operates leading HVAC service businesses out of 76 branches across the United States. Harris Williams served as the exclusive advisor to Service Logic.
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Generac Accelerates its Energy Technology Capabilities with Ccquisition of Enbala Power Networks

  • Generac Holdings Inc. announced the signing of an agreement to acquire Enbala Power Networks Inc., a leading distributed energy resources technology company. The deal solidifies Generac’s position as a market leader in Smart Grid 2.0 technologies and opens opportunities for the company as a grid services provider. Denver-based Enbala is one of the leading providers of distributed energy optimization and control software needed to ensure the operational stability of the world’s power grids.

Public Market Observations1

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1. S&P CapIQ

Public Valuation Multiples by Sector1

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1. S&P CapIQ

Public Markets Are Placing Value on the Energy Transition1

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Representative Comps

Energy Management & Building Technology

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1. S&P CapIQ

Continued Momentum in Energy Management Investment Activity

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What We’re Reading

U.S. Renewable Energy Installations Break Records Despite Pandemic

OilPrice

Despite market uncertainty and construction delays in the pandemic, U.S. renewable power capacity installations surged to a record in 2020. Both the solar and wind power markets saw record capacity additions in 2020, while electricity generation from those renewable energy sources experienced double-digit increases amid a decline in the overall U.S. power generation market due to reduced consumption in the pandemic.

Read the full article here.

These 11 EV Start-ups Are Chasing Tesla. They Can’t All Win.

WSJ

The race is on to become the next Tesla Inc. Tens of billions are riding on the outcome. Investors from Wall Street to the Motor City are betting that a field of electric-car start-ups can emulate the rise of Elon Musk, who sits at the wheel of a company that is on track to sell 500,000 battery-powered vehicles this year, and turn its first-ever annual profit. It won’t be a smooth journey, either, for investors — which include the world’s largest money manager and the second-largest U.S. private-equity firm — or these industry upstarts, which face numerous obstacles. Most haven’t yet successfully built or sold a car. Those that have, have struggled to do so profitably. Some are still hiring a workforce or fighting accusations of fraud. One recently posted a loss of $1.6 billion.

Read the full article here.

What Is Happening with Solar Energy?

Forbes

Anyone who follows developments in the energy sector will know that solar energy is no longer just the future, but the present as well. According to the International Energy Agency’s World Energy Outlook 2020, photovoltaic solar energy is already the cheapest source of electricity in history. Solar and wind are the present and future, not so much for environmental issues, but for economics: the British government admits that solar and wind energy have proved between 30% and 50% cheaper than initially estimated, adding that renewable energies were able, during the first quarter of 2020, to cover no less than 47% of the country’s total electricity demand.

Read the full article here.

Congress Passes Spending Bill with Solar, Wind Tax Credit Extensions and Energy R&D Package

Greentech Media

The U.S. Congress on Monday passed a massive spending bill that includes $35 billion in energy research and development programs, a two-year extension of the Investment Tax Credit for solar power, a one-year extension of the Production Tax Credit for wind power projects, and an extension through 2025 for offshore wind tax credits — a significant last-minute boost for clean energy industries.

Read the full article here.

Select Recent M&A Transactions

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Deal Snapshot: Veregy

Harris Williams advises Veregy on its sale to Court Square Capital Partners

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Veregy is an engineering and energy services company (ESCO) that creates pathways to eco-friendly building and systems optimizations, generating significant immediate and future energy savings. With more than 450 employees operating across the country, Veregy offers energy efficiency upgrades, performance contracting, commissioning, controls, engineering services, solar generation, and battery storage to clients in both the public and private sectors. Harris Williams recently advised Veregy, a portfolio company of Bow River Capital Partners, on its sale to Court Square Capital Partners.

Here, Luke Semple and Drew Spitzer, both managing directors in the Energy, Power & Infrastructure Group, share their thoughts on the ESCO space, what made Veregy such an attractive acquisition, and what other investors interested in this space should consider.

What made Veregy especially attractive?

Luke Semple: Veregy is a great example of platform-building in the ESCO space. The company was built through a series of acquisitions, and it has become very successful in leveraging best-in-class capabilities of each of the component businesses, and extending these capabilities across regions and the company’s customer base. That has driven exceptional revenue growth, profitability, and free cash flow. Even with all of this growth, the company still has a great opportunity for geographic and capability expansion through M&A.

Drew Spitzer: The comprehensive solution mix Veregy offers is a differentiator. It provides a full suite of energy solutions across the building lifecycle — from facility services, engineering solutions, and distributed and renewable energy solutions, to smart building and systems integration and energy-efficient solutions. Veregy’s energy efficiency solutions are especially attractive to the many schools and municipal operations across the country, which are often housed in aging facilities, but lack the budgets for capital improvements. Veregy can bring in the expertise and technologies to help these customers squeeze the most out of this outdated infrastructure without the cost associated with replacing existing equipment. Another thing that sets Veregy apart is its proprietary integrated building and energy management software system, which enables customers to further optimize their energy savings on an ongoing basis via real-time monitoring and controls. That’s something none of Veregy’s local or regional competitors can offer.

Harris Williams Energy Management Overview

HW Energy Management Sector Focus Areas

  • ESCOs
  • Utility Program Management
  • Building Optimization
  • Energy Management Systems
  • LED and Smart Lighting Systems
  • Energy Storage
  • Electric Submeters
  • Demand Response / Smart Grid
  • Billing & Workforce Management
  • Distribution Automation
  • Microgrids / Asset Management
  • EV Charging

Select Recent HW Energy Management Transactions

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For more information on M&A market activity; industry trends and research; and our experience in the space, please contact our professionals.