The buy-out team comprises a consortium of senior managers from Energetics, including the company's Managing Director, Tony Cooper, and founder, Jonathan Jutsen, together with Accretion IV Fund, a private equity fund managed by Accretion Investment Management Pty Ltd.
The buy-out was completed for approximately $10 million after a competitive sale process. The principal vendors were Orion New Zealand Ltd, Equity Partners One Pty Ltd and the Gas Technology Institute of the USA.
The transaction closely follows Energetics' sale of its US software distribution subsidiary, EnVINTA Corp, to Tersus Energy Plc, a clean energy company listed on the London AIM.
Completion of the two transactions will enable Energetics to utilise its 20 years of experience in the Australian energy and greenhouse industry to leverage new opportunities in Australia and the Asia Pacific region.
Accretion directors, Peter Chapman and Ant Duncan, will join the board of Energetics as non-executive directors.
Tony Cooper said: "This transaction marks the beginning of a new era for Energetics. With a renewed focus on the Australian market and demonstrated commitment of senior management, we look forward to continuing to provide our clients with leading-edge energy, greenhouse and sustainability solutions. We are delighted that Accretion has joined with us and we will draw on their management expertise in the further development of the business."
Peter Chapman, Chief Executive of Accretion, said: "We were initially attracted to Energetics because of the high growth prospects of the energy, greenhouse and sustainability services sector. Having observed the performance of the business over the past 18 months, we are very confident of the ability of Tony Cooper and his team to take advantage of the opportunities in this marketplace. We look forward to supporting them in those endeavours."
Since its inception in 1984, Energetics has established a strong reputation in developing and managing industry leading energy, greenhouse and sustainability strategies and initiatives for its clients. Energetics has provided government and many of Australia's top 200 companies, as well as overseas organisations, with tailored energy and environmental management solutions, focused on sustainable outcomes.
In support of its core consulting business and the increasingly complex requirements of its clients, Energetics has developed a powerful suite of software products, including Energy Challenger®, the One-2-Five® diagnostic tools and the award winning EnTERPRIZE.EM®. A world class product, EnTERPRIZE.EM® was developed with help from AusIndustry by way of an R&D START grant of over $4m. This unique product is currently servicing major customers in the USA and Australia, helping them to manage their energy and related environmental data reporting needs associated with the increasing risks related to climate change.
About Accretion Investment Management
Accretion Investment Management is a manager of private equity portfolios for institutional investors. It provides a differentiated model based on combining proven hands-on operational management expertise with active private equity management experience.
Accretion was established in March 2002 to manage the $45 million investment portfolio of the Arrow Development Fund on behalf of NM Rothschild & Sons. In 2003, Accretion was appointed to manage a portfolio of five early stage investments by AMP Capital Investors and, in 2004, Accretion was appointed to manage a portfolio of expansion capital investments by Quay Secondaries I Fund. Accretion has recently launched Accretion IV Fund, a medium-sized private equity fund for which Energetics is the first investment.