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Takeovers, buyouts and bankruptcy
July 24, 2008 - Exclusive
By David Ehrlich,
Cleantech Group
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The battle continues in the garbage business, a solar firm goes on the block, Chapter 11 looms for a fuel cell company, and more, with a total of 25 deals spotted over the past week.
It was a week full of deals, attempted deals and failed deals in cleantech, with Houston-based Waste Management (NYSE: WMI) continuing its pursuit of Fort Lauderdale, Fla.'s Republic Services (NYSE: RSG); Calgary, Alberta-based TransAlta (NYSE: TAC) getting a buyout offer; Vancouver, British Columbia-based Xantrex Technology (TSX: XTX) putting itself on the block; and Eatontown, N.J.-based Millennium Cell going under.
Industry leader Waste Management announced a Hart-Scott-Rodino filing today for its intended acquisition of Republic. But the board of Republic rejected a buyout offer from Waste Management less than a week ago, saying it's committed to its deal with Phoenix-based Allied Waste Industries (NYSE: AW). That merger will combine the country's No. 2 and No. 3 waste and environmental services providers.
TransAlta, one of Canada's largest independent power producers, including hydro, wind and geothermal operations, received an offer from its largest shareholder to take the company private in a deal worth $7.8 billion. LS Power Equity Partners, which holds 9 percent of TransAlta's stock, teamed up with Global Infrastructure Partners for the all cash offer.
Also in Canada, Xantrex announced that it is in exclusive negotiations for the sale of the company, which manufactures advanced power electronic products and systems for the renewable, programmable, and mobile power markets. Xantrex did not disclose the buyer or the financial terms of the possible deal.
And back down in the U.S., the board of Millennium Cell, a fuel cell developer, announced that it plans to file for bankruptcy protection and expects to liquidate the company's assets. The move comes after the company received a going concern qualification from its independent accounting firm earlier this year.
Deals we saw over the past week:
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Houston-based industry leader Waste Management hasn't given up its pursuit of Fort Lauderdale, Fla.'s Republic Services, announcing a Hart-Scott-Rodino filing today for its intended acquisition of Republic. The board of Republic rejected a buyout offer from Waste Management less than a week ago, saying it's committed to its deal with Phoenix-based Allied Waste Industries. That deal will combine the country's No. 2 and No. 3 waste and environmental services providers (see Republic says no to Waste Management).
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Austin, Texas-based Site Controls, a provider of enterprise energy management, facilities intelligence and grid efficiency solutions, announced the asset acquisition of Tulsa, Okla.'s Excel Energy Technologies, including Excel's Ikanosphere energy management solution for retail chains. Financial terms were not disclosed. Excel's backers include Natural Gas Partners, Renaissance Interests, Mesa Capital Partners and Oklahoma Equity Partners.
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Merrimack, N.H.-based GT Solar International (Nasdaq: SOLR) priced 30.3 million shares at $16.50, pricing its initial public offering at the middle of an expected range. It previously set a price range of $15.50 to $17.50 per share. GT Solar provides manufacturing equipment and services to producers of photovoltaic wafers (see GT Solar prices IPO).
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Cambridge, Mass.-based Verenium (Nasdaq: VRNM), a developer of cellulosic ethanol and specialty enzymes, and Rotorua, New Zealand, research partner Scion received a three-year, $5.4 million grant from the New Zealand Foundation for Research, Science and Technology. Scion is a Crown research institute focused on developing sustainable biomaterials. The funding is expected to start in October and will be used for the next stage of development by the New Zealand Lignocellulosic Bioethanol Initiative, a trans-Pacific research collaboration.
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Changzhou, China's Trina Solar (NYSE: TSL), an integrated manufacturer of photovoltaic products, closed an offering of $138 million of convertible senior notes. The company plans to use the net proceeds of the notes offering for the expansion of manufacturing lines for the production of silicon ingots, wafers, solar cells and solar modules, the purchase of raw materials, research and development and other general corporate purposes. The offering includes $18 million of notes to cover the underwriters' overallotment option. Credit Suisse Securities, ABN AMRO Bank and Deutsche Bank Securities were joint bookrunners for the offering.
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Fairfield, Conn.-based General Electric (NYSE: GE) is forming a multi-billion joint venture with Abu Dhabi's Mubadala Development that covers clean energy research and development, commercial finance and aviation. Mubadala is the investment arm of the Abu Dhabi government and also controls the Masdar initiative, the government's umbrella group for all of its cleantech projects. As part of the new partnership, GE will put up to $50 million into Masdar's second Clean-Tech Fund and will establish a clean energy technology center in Masdar City, Abu Dhabi's planned $22 billion zero-carbon, zero-waste, car-free city (see GE teams up with Abu Dhabi on cleantech).
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Vancouver, British Columbia-based Xantrex Technology announced that it is in exclusive negotiations for the sale of the company, which manufactures advanced power electronic products and systems for the renewable, programmable, and mobile power markets. Xantrex did not disclose the buyer or the financial terms of the possible deal (see Xantrex Technology up for sale).
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Google.org, the philanthropic arm of Mountain View, Calif.-based Google (Nasdaq: GOOG), made its first investments under its RechargeIT initiative, designed to accelerate the adoption of plug-in electric vehicles. The group put $2.75 million into Austin, Texas, battery developer ActaCell and Carlsbad, Calif.-based electric car maker Aptera Motors. Google.org did not disclose how much cash it put into each company. The ActaCell investment is part of a larger $5.8 million Series A funding for the University of Texas at Austin spinout that was led by DFJ Mercury. Applied Ventures — the venture capital arm of Applied Materials — and Good Energies also participated in the ActaCell financing (see Google plugs cash into plug-ins).
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Germany's E.ON (OTC: EONGY) and Denmark's DONG Energy have agreed to buy out Royal Dutch Shell (NYSE: RDS.A) stake in the London Array offshore wind farm, becoming 50-50 partners in the planned project. Financial terms of the deal were not disclosed. In May, the giant wind project was threatened with cancellation when the Netherlands' Shell announced plans to sell its stake and shift its wind power focus to the U.S. The £2 billion London Array is expected to be the world's largest offshore wind farm, consisting of 341 turbines with a total capacity of 1 gigawatt of power (see E.ON, Dong buy Shell's stake in London Array).
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Calgary, Alberta-based TransAlta, one of Canada's largest independent power producers, including hydro, wind and geothermal operations, received an offer from its largest shareholder to take the company private in a deal worth $7.8 billion. LS Power Equity Partners, which holds 9 percent of TransAlta's stock, teamed up with Global Infrastructure Partners for the all cash offer (see TransAlta gets $7.8B buyout offer).
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Cardiff, Wales-based solar power company G24 Innovations raised $30 million through an investment by the alternative energy fund 4RAE. This is G24i's second major funding announcement in less than two months following a $20 million investment by Morgan Stanley Principal Investments in June. G24 said it's the world's first company to commercially manufacture next generation dye-sensitized thin film solar cells.
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Ontario is investing nearly Cdn$8 million in Mississauga, Ontario-based 6N Silicon under the province's Next Generation of Jobs Fund. The company has developed a manufacturing process to turn low-grade silicon into the form needed to produce solar cells. The province said the funding supports 6N Silicon's $50 million expansion, which includes a new manufacturing plant in Vaughan, Ontario, and the creation of 84 jobs.
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German private equity investor Granville Baird acquired a majority stake in Meier Vakuumtechnik as part of a management buyout. Meier specializes in the development, production and sales of equipment for manufacturing photovoltaic panels, with plant facilities in Bocholt and Rossla, Germany. Financial terms of the deal were not disclosed.
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Australia's Energy Developments has reportedly hired RBC Capital Markets to auction its £200 million landfill gas business in the U.K., France and Greece. Energy Development has 60 megawatts of landfill gas generation in the U.K., with another 60 MW in France and Greece.
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Sweden's QuNano created a new spin-out company, Sol Voltaics, to focus on the development and commercialization of semiconductor nanowire-based, multi-junction concentrator photovoltaic solar cells. QuNano closed on an undisclosed amount of seed funding in the new company from Provider Venture Partners, Teknoinvest, Scatec Adventure and Nano Future Invest.
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Folsom, Calif.'s Marquiss Wind Power, a developer of rooftop wind turbines, has acquired the assets of Cirrus Technologies, a Carson City, Nev.-based developer of wind power technologies. Financial terms were not disclosed. Marquiss has raised approximately $2 million in venture capital funding led by Velocity Venture Capital.
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Carbonflow, a San Francisco-based maker of software for the carbon market, raised $2.9 million in Series A funding. Clean Pacific Ventures led the round, joined by OVP Venture Partners and Meridian Energy. Founded in 2006, Carbonflow is developing a software system to lower the cost and time it takes to create a carbon credit under the Kyoto CDM, JI and ETS compliance mechanisms.
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Athenix, a Research Triangle Park, N.C.-based developer of products and technologies for agricultural and industrial applications like biofuels, reportedly raised $10 million in Series S funding. The round included return investors Hunt Ventures, Intersouth Partners and Polaris Venture Partners. Athenix provides genes and enzymes for the bioconversion of biomass, such as corn stover, straw and distillers dried grains, into biofuels.
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Carbonetworks, a Victoria, British Columbia, provider of enterprise greenhouse gas emissions management software and services, held a first close on a $5 million Series A round led by NGEN Partners. The company said it's currently working with over 180 organizations in 23 countries to create and manage their greenhouse gas emissions strategies.
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Performance Plants, a Kingston, Ontario-based stress-resistant crop seed technologies company, raised C$13 million in venture capital funding. Ceres Global Ag led the round, joined by Eastwood Capital. The company said its technologies deliver higher yields and more consistent and cost effective harvests under conditions of environmental stress such as drought and excessive heat or cold. Performance Plants is developing food crops as well as non-food biomass crops such as switchgrass, Miscanthus grass and hemp for biofuels use.
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Seattle-based HaloSource, a clean water and antimicrobial technology company, raised $11.5 million in financing. New investors Origo Sino-India and Origo Resource Partners joined existing investors including Unilever Technology Ventures. HaloSource, which offers consumer water filtering systems, also provides water clarification solutions to treat swimming pools and industrial waste water.
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Triodos Renewables Energy Fund, a U.K. clean energy company, announced that its recent share issue was oversubscribed, raising £10 million from both public and institutional investors. The company was aiming to raise £9.1 million. The latest share issue takes the company's total assets to £40 million. Triodos has financed the Haverigg II Wind Farm in Cumbria, a wind farm project at Caton Moor in Lancashire, a single wind turbine in the Orkney Islands, and the Beochlich Hydro Electric project in Argyll in Scotland.
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India's EPIC Energy has acquired Sathian Sun Power Systems, which is based in Tamil Nadu. Financial terms were not disclosed. Sathian Sun Power is a solar energy products supplier. The company has installed solar street lights and other solar systems for various government bodies in Tamil Nadu.
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The board of Eatontown, N.J.-based Millennium Cell, a fuel cell developer, announced that it plans to file for bankruptcy protection and expects to liquidate the company's assets. The move comes after the company received a going concern qualification from its independent accounting firm earlier this year. The company plans to file for bankruptcy within the next few weeks (see Millennium Cell goes under).
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Milwaukee, Wis.-based Rexnord Holdings, a power transmission and water management company, filed with the U.S. Securities and Exchange Commission to raise up to $750 million in an initial public offering. The terms of the offering have not yet been set. Backed by Apollo Management, the company plans to trade under the symbol "RXN" on the New York Stock Exchange, joining a growing list of water-related companies going public this year (see Rexnord Holdings heads for the public market).
Browse previous deals here.
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Is TransAlta a cleantech company?
With 65% of TransAlta's power generated by coal and 10% by diesel/gas one is hard pressed to say that it is a cleantech company.
Gasification
Are any of these companies that are going under useing the gasification process if not why.What would be the possibilities of useing such a process?Would it be practicle?Would it be cost effecient? Could it pull them out of the Hole? Why?
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