Basalt Infrastructure Partners II LP (“Basalt”) and its consortium partner, DCO Energy (“DCO”), today announced that they have entered into a definitive agreement to acquire Detroit Renewable Energy LLC (“DRE”). The proposed transaction will benefit DRE’s employees, customers and the broader Detroit community. Terms were not disclosed.
Created in 2010, Detroit Renewable Energy is an integrated renewable energy system comprised of Detroit Thermal, Detroit Renewable Power and Hamtramck Energy Services. Together, these companies provide the City of Detroit with safe, reliable and cost-effective solutions for clean energy and waste disposal. Detroit Thermal, the City of Detroit’s underground district energy steam system, has reliably heated some of Detroit’s landmark buildings and businesses for more than 100 years.
“Detroit Renewable Energy has played a key role in Detroit’s renaissance over the past seven years. In partnership with Basalt & DCO, the company will be in an even stronger position to support the City’s growth and success for many years to come,” said Steve White, President of Detroit Renewable Energy. “This will benefit all stakeholders as Basalt & DCO possess the experience, expertise and resources to partner with the community and build upon our strong record of delivering clean, reliable and cost-effective renewable energy to critically-important businesses across the City of Detroit.”
Commenting today for Basalt, Managing Partner, Rob Gregor, said, "The acquisition of DRE continues Basalt’s strategy of investing in high quality, core infrastructure assets in the utility, energy, and transport sectors. For DRE customers and stakeholders, it will be business as usual. We will maintain the company's Detroit headquarters and local management team and, as long-term investors, we are committed to maintaining safe and reliable service and investing in DRE and the communities it serves."
Jeff Neil, who heads the North American unit for Basalt, added, "We are excited by this important acquisition and committed to providing DRE with the capital necessary to maintain and improve its energy infrastructure. We are very pleased to be investing alongside DCO, a company that brings a wealth of expertise in the operation of urban district energy systems.”
“DRE and its customers will benefit from the technical and financial resources associated with being part of a company that is focused on the district energy business” said Frank DiCola, DCO’s CEO. “The acquisition is a positive development for the Detroit employees, customers and the communities served by DRE,” added DiCola. “DRE customers will continue to be served locally by experienced staff at the central plants, but they will gain the financial support and expertise of a large, national company that is focused on providing energy services.”
Bracewell LLP served as Basalt’s primary legal advisor. King & Spalding LLP served as primary legal advisor to DRE in this transaction.
Date: Jul 21, 2017