Acorn Energy, Inc. (ACFN) Gains $61.8 Million from Sale of CoaLogix

QualityStocks would like to highlight Acorn Energy, Inc. (NASDAQ: ACFN), a holding company focused on technology driven solutions for energy infrastructure asset management. The company’s four businesses improve the world's energy infrastructure by making it cleaner and less expensive to operate air pollution systems for coal and gas-fired power plants (CoaLogix), more secure by providing security solutions for underwater energy infrastructure (DSIT), more reliable by providing condition monitoring instruments for critical assets on the electric grid (GridSense), and more productive and efficient by increasing oil and gas production while lowering costs through use of ultra-high sensitive seismic tools for more precise pinpointing of oil and gas reservoirs (US Seismic).

In the company’s news Friday,

Acorn Energy announced a definitive agreement for the sale of its subsidiary CoaLogix for $101 million to funds managed by private equity firm, Energy Capital Partners (“ECP”). Acorn anticipates a $61.8 million pre-tax proceed, or approximately $3.53 per outstanding Acorn share. Acorn Energy owns about 65% of CoaLogix on a fully diluted basis with the balance held by EnerTech Capital and CoaLogix management.

CoaLogix is the worldwide leader in selective catalytic reduction (SCR) management services and catalyst regeneration technologies that reduce nitrogen oxides (NOx) emissions in coal-fired electric utility power plants. With leading-edge technologies, a highly skilled workforce, and more than 160 years of combined senior management experience, CoaLogix works to help companies maintain compliance with stringent environmental regulations through technology, optimization and efficiency improvements. Most coal-fired utility plants in the United States use CoaLogix’s SCR catalysts and regeneration technologies creating a $1.5 billion market share in the US.

Acorn created CoaLogix in November 2007 to purchase SCR-Tech LLC and its related entities. Acorn’s original investment of $11.0 million was for 100% of CoaLogix. Later, Acorn invested an additional $7.2 million in CoaLogix for a total investment of $18.2 million. Acorn anticipates that its taxes on income for 2011, after giving effect to the transaction, will not exceed $5 million.

“Acorn provided needed resources and capital for CoaLogix to grow and become the leading US player in the SCR catalyst regeneration market over the past few years. ECP has the experience and capital to extend CoaLogix’ leading position in North America and beyond. We believe that the transaction is in the best interests of our shareholders as well as the future of CoaLogix,” stated John Moore, CEO of Acorn Energy in a press release Friday.

“We are excited to be joining forces with Energy Capital Partners and its successful track record of supporting companies across the energy sector. ECP’s substantial resources, expertise and power industry relationships will enable CoaLogix to continue to execute its aggressive expansion plans going forward,” stated Bill McMahon, CEO of CoaLogix in the recent sale announcement.

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