Energy efficiency company Octus is acquiring Élan Energy Corp. and Sunarias Corporation from Alternative Energy Partners (AEGY). The acquisition is exchange for common shares of Octus. AEGY previously acquired Élan Energy Corp. and its operating subsidiary, R.L.P. Mechanical Contractors, Inc., in a transaction with a stated value of $5 million, and acquired Sunarias in a transaction with a stated value of $2 million.
Octus is a building energy efficiency company that provides services to reduce the utility costs of commercial and institutional buildings through energy-efficient lighting, HVAC and water management systems and products. Clients include ARCO, Bank of America, Blockbuster, Chevron, Delta Airlines, Frito Lay, Hewlett-Packard, Home Depot, Ikea, Nabisco, Pepsi, Petco, Safeway, Sears, Siemens, and University of California.
In addition, Octus has agreed with Lin Han Equity Corporation to transfer majority ownership of Octus to Lin Han, in exchange for common stock in privately-held Healthcare of Today, Inc., and working capital to fund Octus’s growth strategy.
“The addition of Élan Energy, a proven, profitable and vibrant HVAC and refrigeration efficiency contractor, immediately boosts Octus’s financial strength, customer offerings and market reach,” said Octus CEO Chris Soderquist. “Market demand for combined energy and water-saving solutions, coupled with utility company rebates and project financing, has increased steadily in the last few months and these transactions will enable Octus to aggressively pursue existing and new business opportunities.”
As part of the transaction, the existing business operations of Octus will be transferred to a new, wholly-owned subsidiary operating company, and Octus will become a public holding company for its operating subsidiaries, providing administrative and related services to the entire corporate group.
Both transactions are expected to close by March 15, 2011.
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