Harris Williams & Co. Advises Franklin Energy in its Sale to Cortec Group

October 7, 2010

Harris Williams & Co. is pleased to announce the sale of Franklin Energy Services, LLC (Franklin), a portfolio company of Brass Ring Capital (Brass Ring), to Cortec Group (Cortec). The transaction closed on October 7, 2010. Harris Williams & Co. acted as the exclusive advisor to Franklin Energy. The transaction was led by Drew Spitzer and Matt White from Harris Williams & Co.'s Energy & Power (E&P) Group along with Glenn Gurtcheff, head of the firm's Minneapolis office.

"As one of the nation's largest energy efficiency program managers, Franklin Energy has consistently exceeded its customers' energy savings goals by designing and implementing highly customized energy efficiency programs," noted Drew Spitzer, managing director and co-head of Harris Williams & Co.'s E&P Group. "The U.S. is experiencing an unprecedented groundswell of support from individuals, businesses and government to lower energy costs and establish energy independence. Increasing energy efficiency represents the most practical and cost effective method to achieve the goal of energy independence. Industry leaders, such as Franklin Energy, are poised to continue to benefit from the strong growth trends in the energy efficiency segment."

Franklin is one of the largest energy efficiency program management companies in the U.S. The company designs and implements customized programs for utilities to promote the efficient consumption of electricity and natural gas. Utilities depend on Franklin's energy efficiency solutions to economically manage long-term demand growth and comply with legislative and regulatory policies that mandate reduced consumption.

Brass Ring is a private investment firm focused on addressing the equity and liquidity needs of small businesses in the Upper-Midwest. Brass Ring's team works in partnership with owners and managers to facilitate ownership transitions of profitable, niche companies. Established by David J. Raffel and Steven D. Peterson, Brass Ring's mission is to empower promising small businesses with the resources to achieve their potential.

Cortec is a New York-based private equity firm which acquires high value-added, lower-middle market specialty manufacturing, distribution and service businesses with leadership positions in their market niches. Cortec manages approximately $750 million of committed capital which it uses to acquire platform companies with enterprise values of $30 million to $300 million as well as smaller follow-on acquisitions. Franklin Energy is Cortec's seventh investment in Cortec Group Fund IV, L.P.