Stonepeak Infrastructure Partners and Ironclad Energy Partners Announce Sale of Rochester District Energy Assets to SDCL Energy Efficiency Income Trust for $260mm Enterprise Value
Ironclad Energy Partners LLC (“Ironclad”), an affiliate of Stonepeak Infrastructure Partners (“Stonepeak”), has agreed to sell 100% of its indirect equity interests in RED-Rochester, LLC (“RED”) and associated affiliates to SDCL Energy Efficiency Income Trust plc (“SEEIT”) for $260 million enterprise value, subject to customary closing adjustments.
As one of the United States’ largest district energy systems, RED exclusively serves 100+ commercial and industrial customers within the Eastman Business Park (“EBP” or the “Park”) in Rochester, New York. RED’s asset base has continuously served the 1,200-acre EBP and its customers with reliable and competitively priced utilities for over a century. Today, RED serves customers with its highly efficient and environmentally friendly tri-generation plant, delivering 16 separate utility services, including steam, chilled water, and electricity, in support of its customers and the 5,500 employees that work within the Park.
Upon acquisition in 2016, Stonepeak and Ironclad committed ~$80mm of additional capital to execute on the conversion of RED’s coal-fired central plant to modern natural gas boilers. The brownfield project was delivered in 18 months, on time and on budget and without any disruption to customers. Following the completion of the natural gas conversion, Stonepeak and Ironclad committed additional capital to further modernize RED’s facilities, completing over 40 efficiency projects during the four-year ownership period, and identifying another 100+ such projects for future execution. Stonepeak and Ironclad’s efforts within the Park were well-received by stakeholders, drawing recognition and support from local and state entities such as the New York State Energy & Research Development Agency and Rochester Gas & Electric. Through executed and identified projects, RED is expected to reduce CO2 emissions within the Park by the equivalent of an 880MW photovoltaic solar installation and will reduce SO2 and NOx emissions by ~99% and ~60%, respectively. SDCL expects to continue these modernization and efficiency efforts under its ownership, which are expected to continue delivering both increased profitability and emissions savings via fuel usage reduction.
The transaction is expected to close in Q2 2021, following receipt of customary regulatory approvals.
Luke Taylor, Senior Managing Director at Stonepeak said, “As a New York-based asset manager, Stonepeak is pleased to have had the opportunity to support a successful transition of the RED assets and to meaningfully contribute to the ongoing revitalization of the Finger Lakes region of New York. We are confident that the new owners will continue our efforts to drive environmentally-conscious growth within the Eastman Business Park.”
John Prunkl, Chief Executive Officer at Ironclad added, “Ironclad is thankful for the support of RED’s employees, customers, and all other stakeholders within the Park as we successfully transitioned the assets from coal to natural gas, executed over 40 efficiency projects, meaningfully reduced CO2 emissions, and commercially, technically, and financially positioned the utility and the Park for growth. Ironclad will work closely with SEEIT to ensure a successful transition of the business and we look forward to RED and EBP’s continued success.”
Jonathan Maxwell, founding partner and Chief Executive Officer of SDCL, the manager for SEEIT, said, “SEEIT is acquiring an operational and established district energy system that provides a range of essential and efficient energy services and utilities to a diversified customer base on one of the largest business parks in the United States of America. We expect the project to make positive contributions to SEEIT’s earnings and cash flow. At the same time, the project offers the potential for growth over the medium to long term through the addition of new customers and the implementation of accretive energy efficiency measures.”
Scotiabank acted as the exclusive financial advisor to Stonepeak and Ironclad, and Macquarie Capital acted as financial advisor to SDCL.
Mayer Brown LLP served as legal counsel for the selling parties. Wilson Sonsini Goodrich & Rosati was legal counsel to SDCL.
Stonepeak Infrastructure Partners (www.stonepeakpartners.com) is an infrastructure-focused private equity firm headquartered in New York with $31.3 billion of assets under management (as of September 30, 2020). Stonepeak invests in long-lived, hard-asset businesses and projects that provide essential services to customers, and seeks to actively partner with high-quality management teams, facilitate operational improvements, and provide capital for growth initiatives.
ABOUT IRONCLAD ENERGY PARTNERS
Ironclad Energy Partners is a joint venture between Stonepeak and industry veterans John Prunkl and Christopher Fanella. Ironclad was founded in early 2016 with the express intent of acquiring and adding value operationally, commercially, technically and financially in middle-market energy facilities. Formerly CEO and CCO of Primary Energy Recycling Corporation, a TSX traded company, the Ironclad principals have acquired, owned, partnered, operated, and/or constructed projects in the U.S. and around the world totaling more than 11,000 MW of capacity.
SDCL Energy Efficiency Income Trust plc is the first UK listed company of its kind to invest exclusively in the energy efficiency sector. Its projects are primarily located in the UK, Europe and North America and include, inter alia, a portfolio of cogeneration assets in Spain, a portfolio of recycled energy and cogeneration projects in the United States, a regulated gas distribution network in Sweden and, most recently, a portfolio of commercial and industrial solar and storage projects in the United States.
SEEIT’s investment manager is Sustainable Development Capital LLP. Established in 2007, SDCL, with a proven track record of developing and investing in energy efficiency and decentralised energy generation projects.
Sard Verbinnen & Co
Ben Spicehandler / Julie Rudnick
About Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
CGTN: A City on the Rebound: How Hong Kong Can Move Forward13.4.2021 19:57:00 CEST | Press release
The past two years have been tough on the world, not just due to the pandemic but also the geopolitical volatility that has roiled many countries and regions. In East Asia, the financial hub of Hong Kong has experienced its fair share of difficulties, but as life slowly returns to normal, problems that have plagued the city for decades remain. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210413006039/en/ (Photo: Business Wire) The city's brief history is well-documented – its humble industrialization in the 1970s coupled with the entrepreneurial spirit of its residents saw it become a bastion of wealth at a time when that part of the world was still economically stagnant. Coupled with a liberalized financial system and generous policies, the city catapulted itself toward the top, competing with mega-cities such as London and New York City. For all its glitz and glamour, Hong Kong contained contradictions that boiled over i
Tigo Intellectual Property Infringement Lawsuit against APS Continues to Grow13.4.2021 19:53:00 CEST | Press release
Tigo Energy, Inc., the solar industry worldwide leader in Flex-MLPE (Module Level Power Electronics), has filed a new lawsuit against Altenergy Power Systems (“APsystems”), in addition to its current ongoing case. The complaint includes four new patent infringement claims, as well as an additional claim from a patent asserted in the previously-filed lawsuit. The complaint was filed in the United States District Court for the Northern District of California. The total number of Patents-in-Suit in both cases now stands at six. The complaint includes all APsystems legal entities in the US as well as in China. The new complaint alleges that APsystems’ Sunspec-compliant products infringe the following U.S. patents: 8,653,689, 9,584,021, 9,966,848, 10,333,405, and 8,933,321. The complaint centers around various systems and methods used in the PV module rapid shutdown unit. Tigo’s industry leading solar equipment provides optimized, monitored and safe solar to protect this critical infrastruc
Maxon Announces Cinema 4D S2413.4.2021 18:05:00 CEST | Press release
Maxon, the developers of professional software solutions for motion designers and visual effects artists, today announced Cinema 4D Subscription Release 24 (S24). The latest subscription-only release of Maxon’s 3D application allows users to easily browse and obtain models, materials and other assets, and to intuitively place them within the scene. The release also includes key workflow enhancements and a sneak peek at continued progress on the Scene Nodes and Scene Manager interfaces to the new core. Cinema 4D S24 is immediately available for subscription customers. For perpetual license holders of Cinema 4D a release is scheduled later this year that will incorporate the features of S24, as well as future enhancements. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210413005918/en/ Maxon Cinema 4D S24 features placement tools, a new asset browser, animation workflow enhancements, and continued development on powerful nodes
Maxon Announces Redshift for macOS Including Native Support for M1-Powered Macs13.4.2021 18:05:00 CEST | Press release
Today, Maxon announced the immediate availability of Redshift for macOS including support for M1-powered Macs as well as Apple’s Metal Graphics API. Redshift, the award-winning, production-ready renderer, offers a rich feature set including ray switches, flexible shading networks, motion blur, AOVs, deep output, layered EXR and much more. Unlike other GPU renderers, Redshift is a biased renderer that enables artists to adjust the quality of individual techniques in order to get the best performance/quality balance for production. As a Universal solution, Redshift is optimized for high-end performance across both M1- and Intel-powered Macs. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210413005903/en/ Redshift for macOS signifies a milestone, bringing cutting-edge cinematic rendering to Mac artists. (Graphic: Business Wire) Redshift for macOS signifies a milestone, bringing cutting-edge cinematic rendering to Mac artists. A
Golden Euro-spiller tok rekordgevinst på € 3 millioner13.4.2021 17:29:00 CEST | Pressemelding
Champagnen flyter og feiringen er godt i gang hos Golden Euro Casino, etter at en heldig spiller tok jackpoten og vant en monstergevinst på € 3 746 291. Spillerens gevinst kom på Realtime Gamings enormt populære automat Aztec Millions. Det er den største gevinsten gjennom tidene på det progressive jackpotspillet, og hos Golden Euro. For å starte økten gjorde den 49 år gamle spilleren et kredittkortinnskudd på € 27, og hentet Golden Euros ettertraktede innskuddsbonus på 50 %. Dermed hadde hun € 54 til å spille med. Gevinsten kom fra en liten enkeltinnsats på € 5 plassert fra smarttelefonen hennes. Da hjulene stoppet opp og jackpoten ble utløst, ble spilleren umiddelbart mangemillionær. Adrian Berger hos Golden Euro Casino uttaler: “Vi er så glade for at en av spillerne våre har landet den største jackpotgevinsten noensinne på Realtime Gamings Aztec Millions. “Jeg snakket med spilleren kort tid etter at hun bekreftet gevinsten sin og hun var utrolig opprømt, selv om det at hun nå er en m
Agthia Embarks on Transformational Journey with its Strategy to Become an F&B Leader by 202513.4.2021 17:06:00 CEST | Press release
Agthia Group PJSC revealed its long-term strategy to become an F&B leader in the Middle East, North Africa and Pakistan (MENAP) region and beyond by 2025. The strategy is built on three strategic pillars (growth, efficiency and capability) and is designed to extend the Group’s market leadership, provide significant value for all stakeholders and continue to drive profitability growth with a consumer-centric approach. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210413005841/en/ Khalifa Sultan Al Suwaidi - Chairman - Agthia Group (Photo: AETOSWire) The Abu Dhabi-based organisation is engaged in manufacturing, distribution and marketing of a wide range of F&B products, including popular regional brands such as Al Ain (water), Al Foah (dates), Al Faysal Bakery & Sweets (bakery) and Grand Mills (flour and bakery) among others. Khalifa Sultan Al Suwaidi, Chairman, Agthia Group, said: “The strategy will unleash the full potentia
FRISS Acquires Terrene Labs to Expand Underwriting Efficiency13.4.2021 17:03:00 CEST | Press release
FRISS, the market leader in AI-powered fraud, risk and compliance solutions for P&C insurance carriers, today announced the acquisition of Terrene Labs. Industry leaders in providing Commercial Insurance providers with comprehensive Risk Insights, Terrene will be a fundamental addition to the FRISS product family. Commercial lines underwriters now have access to thousands of actionable insights within just 5 seconds, replacing a disjointed manual and limited enrichment process that previously took up to a week and delayed policies for quality customers. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210413005837/en/ FRISS acquires Terrene Labs and welcomes them to their family. (Graphic: Business Wire) “We’re bringing commercial lines to the digital age together,” remarked FRISS CEO and Co-founder Jeroen Morrenhof. “True risk insights were always hard to access and we’re changing that. Combined with the analytics capabilitie