Abu Dhabi's Masdar Cleantech Fund and London's Virgin Green Fund acquire US waste recyler DuraTherm
08 July 2008
In one of the the first leveraged buyouts in the cleantech sector, Abu Dhabi's Masdar Cleantech Fund and London's Virgin Green Fund have announced the acquisition of established refinery services operator DuraTherm, the Texas City-based business that also has operations in metal recycling, for an undisclosed sum.
The acquirers said that the acquisition, structured as an asset acquisition, was funded by debt raised from HSH Nordbank AG.
DuraTherm's founder and exiting CEO Barry Hogan will continue to serve the company as an adviser. According to incoming CEO Kevin Trant, formerly with Siemens Water Technologies as EVP of its services and products group, the newly positioned company has a major commitment from its venture-oriented equity investors to put it on a footing to expand its business model rapidly on three fronts.
The Masdar Clean Tech Fund LP is a $250-million investment vehicle made up of commitments from Abu Dhabi Future Energy Company (ADFEC), Consensus Business Group (CBG), Credit Suisse (CS), who co manage the fund, and Siemens AG.
The fund leverages Abu Dhabi's larger alternative energy initiative, known as the "Masdar Initiative" that was launched in March 2006 to champion the development of advanced energy technologies and promote diversified and sustainable economic growth. The initiative leverages Abu Dhabi's considerable financial resources and energy expertise into innovative solutions for cleaner, more sustainable energy production and resource conservation.
Virgin Green Fund has been established to invest in companies in the renewable energy and resource efficiency sectors, primarily in the United States and Europe. Virgin Green Fund is a sector-focused, multi-stage investment firm investing primarily in expansion/growth capital opportunities with offices in London and San Francisco. The Fund has been launched with the backing of the Virgin Group and a strong network of additional limited partners.
