Fusion Corporate Partners

Private Equity busines The Riverside Company has sold environmental consulting company ENTRIX to Australian professional services provider Cardno. It is Riverside’s first exit of 2010. The price was not disclosed, though Riverside said it had achieved a 2.8x gross cash-on-cash return on its investment.

ENTRIX provides environmental and natural resource management consulting services. The business was founded in 1984 and has 33 offices in 17 states and three countries. It serves over 1,000 clients each year on over 2,000 projects. During its seven-year holding period, Riverside  completed three add-on acquisitions:

• Northwest Economic Associates of Vancouver, Washington (January 2004)
• Water Resource Solutions of Cape Coral, Florida (February 2006)
• Biological Research Associates, LLC of Panama City, Florida (April 2007)

ENTRIX’s management team will remain in place under Cardno ownership.

“We’re proud of the work we’ve done to build ENTRIX into a bigger and better company with a leadership position in water and natural resource management and a national scope,” said Anne Hayes, Riverside Partner. “ENTRIX has a stellar management team that has driven the growth initiatives and the effective integration of acquisitions which were key to our strategic plan – to capitalize on ENTRIX’s strong brand and reputation to extend their services and geographic reach. This successful exit comes despite an uncertain macroeconomic environment, which is further evidence of the deep underlying value ENTRIX offers to its clients.”

Todd Williams, ENTRIX CEO said, “Partnering with Riverside has allowed us to position ENTRIX for stronger growth than the overall market. This opportunity exists due to our ability to provide practical solutions to the many complex challenges faced by our clients such as water scarcity, greenhouse gas emissions and land use conflicts. The diversification across markets and services creates a unique ability to serve a variety of customers.”

Harris Williams acted as the exclusive adviser to ENTRIX and Riverside on the transaction. Jones Day and Kirkland & Ellis provided general counsel to Riverside on the sale.

Location: ENTRIX – USA, Houston, Texas: Cardno – Brisbane, Australia

Ref: F231109-493

Hybrid Energy Holdings has signed a Letter of Intent with KS IP Holdings, a private Intellectual Property Holding company specializing in clean energy technologies, to acquire and develop a select group from KS-IPH’s Solar Energy Technologies portfolio. The transaction is valued at $18 million and will be completed as an equity-based transaction with no issuance of debt or use of cash reserves.

The Company is currently completing its due diligence on the individual assets, systems and operations as the first acquisition under its recently announced Solar Energy Acquisition and Development Project; the first official project of the Company’s diversification strategy. The Company will be issuing formal updates as the review and integration process progresses and anticipates a formal closing on this Letter of Intent within the next 30 days.

The Solar Energy Acquisition and Development Project is the first major acquisition and development project under the Company’s New Energy Initiative, which calls for the aggressive investment in, acquisition of and development of nascent ‘New Energy’ technologies Intellectual Property assets and operations in the Clean Energy, Energy Smart Technologies and Carbon Capture & Storage sectors of the Energy Sector.

The Company recently announced Phase II of its growth and acquisition strategy; the diversification and expansion of its current asset holdings with the launch of the ‘New Energy Initiative.’ The Company has successfully established a strong and growing asset base of clean energy producing assets with strong recurring profits and cash-flows. The company will continue its acquisitions in this sector and expand the scope of its acquisitions.

Location: USA, Reno, NV

Ref: F231109-490

Smart energy efficiency company Octus. has acquired substantially all of the assets of Quantum Energy Solutions, a smart energy efficiency company that reduces energy costs for commercial and institutional buildings through energy-efficient lighting, HVAC and energy management systems. 

Founded in 1974, Quantum is one of the first energy management companies in the United States to specialize in energy efficiency.

Quantum has executed more than 1,500 energy projects totaling more than $100 million in value for clients including 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.

“Quantum is a leader in implementing energy efficiency solutions for commercial, industrial and institutional building owners and managers,” said Chris Soderquist, Octus CEO. “This expansion catalyzes our mission to significantly reduce energy expenses and increase cash flow — immediately and perpetually — for building owners, managers and occupants. We believe there has never been a better time to invest in energy efficiency.”

Pursuant to the asset purchase agreement, Octus purchased substantially all of the assets of Quantum for a purchase price subject to certain post-closing adjustments described in the agreement, and the company agreed to assume certain liabilities associated with Quantum. Consideration to be paid and liabilities assumed by Octus in the transaction include: 150,000 shares of common stock granted to Quantum; assumption of approximately $108,000 in Quantum accounts payable and credit facilities; assumption of $130,000 in Quantum long-term debt; and assumption of approximately $50,000 in Quantum accounts receivable. In addition, Octus entered into a two-year consulting agreement with Quantum president Jim Collins.

Location: USA, USA, Davis, CA 

Ref: F231109-489