Energy Alternatives, Inc. sold to NRG

Having represented the owner of Energy Alternatives, Inc. (EA), Dakota Electric Association DEA) in an earlier divestiture, DEA returned to the M&A Group and Ivar Sorensen when the Association was approached by a private equity firm expressing serious interest in acquiring DEA’s wholly owned subsidiary, Energy Alternatives, Inc. After 15 years of successful operations, EA owned, leased and serviced in excess of 100MW of standby electric generating power installed with approximately 100 customers in 6 states. DEA’s Board of Directors, upon consultation with the M&A Group regarding prospective exit valuations, ongoing business risks etc. decided to engage the M&A Group in a process to sell EA. Having first established financial benchmarks for a successful transaction, the M&A Group initiated and managed a two-pronged approach to (a) a negotiated transaction with the PE firm, while (b) preparing for and eventually launching a full, competitive process to assure DEA’s board that a transaction, if closed would be at full value. The competitive process prevailed with multiple offers from strategic and major US and International PE firms. The DEA board accepted the offer from NRG, a major NYSE listed power generating company, and successfully closed the transaction upon approvals from the FERC (Federal Energy Regulatory Commission).

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