Zephyr Cleantech Report September 2011
1: PE, VC and DC The following report details mergers and acquisitions activity in the cleantech sector in September 2011 using data from the Zephyr database. It focuses on global deals activity by target company within the cleantech sector. Click here to access the raw data in an Excel spreadsheet. 1 Private Equity, Venture Capital and Development Capital 2 All deals: Mergers, Acquisitions, Joint Ventures 3 IPOs Lack of consistent investment in sector There was weakened private equity and venture capital investment in cleantech companies in September and a lack of consistency remains. There were 24 deals worth a combined USD 228 million. In monetary terms this was one of the weaker results of the last 12 months and was 84 per cent lower than the USD 1,409 million recorded this time last year. Despite the fact that deal volume grew by 50 per cent between August and September, value was down 84 per cent from USD 1,439 million to USD 228 million. A sharp drop in value at the same time as a significant increase in volume suggests much lower target company valuations in September compared with August. This is consistent with the list of high value private equity investments in the cleantech sector none were worth more than USD 50 million in September. Black Coral Capital and Hanwha International backed the largest deal, which was a USD 50 million investment in US solar power group OneRoof Energy. Private equity, venture capital and development capital deals by volume and value Announced date No of deals Sep-11 24 228 Aug-11 16 1,439 Jul-11 28 526 Jun-11 42 766 May-11 24 2,443 Apr-11 22 198 Mar-11 31 1,037 Feb-11 22 265 Jan-11 32 799 Dec-10 31 1,259 Nov-10 36 353 Oct-10 27 1,630 Sep-10 26 1,409 Total deal value Page 1
1: PE, VC and DC Private equity, venture capital and development capital deals by volume and value Deal value 3000 2500 2000 1500 1000 500 45 40 35 30 25 20 15 10 5 0 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 0 Total deal value Number of deals Page 2
1: PE, VC and DC US is most important target of PE investment but China leads overall US-based cleantech companies were the most important targets of private equity and venture capital investment. There were 11 such transactions, worth a combined USD 179 million, accounting for 46 per cent of all global cleantech deals and 79 per cent of their value during the four weeks. However, in terms of wider M&A, equity raising and joint venture transactions, Chinese cleantech targets accounted for USD 676 million of dealmaking, compared with USD 418 million for those based in the US. Canada and the UK also had higher total deal values than the US in September, with USD 567 million and USD 443 million, respectively. Japan makes first ever investment in offshore wind segment The largest M&A deal of the month involved Japanese machinery major Marubeni buying 50 per cent of a wind farm off the British coast. Worth USD 325 million, it was the first ever investment by a Japanese company into an offshore wind power project. Marubeni is now a partner of Denmark s Dong Energy in the project. The largest deal by value was a fundraiser by Chilean conglomerate Sigdo Koppers, which is involved in the hydrocarbons and construction industries. The group has a presence in environmental engineering and supplies hydrogen to a bio refinery. It raised USD 370 million for expansion. Page 3
1: PE, VC and DC Private equity, venture capital and development capital deals by value Deal value Deal type Target Target business description Target country Equity provider Deal status 50 Minority stake OneRoof Energy Inc. Solar energy generation systems developer and manufacturer; Solar energy generation systems installation retailer; Solar energy generation systems installation services US Black Coral Capital; Hanwha International LLC 35 Minority stake Core Wind Power Inc. Wind turbine generator developer US New Enterprise Associates Inc.; Molycorp Inc. 25 Minority stake RedZone Robotics Inc. Wastewater pipeline inspection products manufacturer US ABS Capital Partners LP 25 Minority stake Clean Power Finance Inc. Residential solar financing services; Solar power sales mangement applications platform operator US Kleiner Perkins Caufield & Byers; Claremont Creek Ventures; Clean Pacific Ventures LLC; Sand Hill Angels Inc.; Google Ventures 12 Minority stake Advanced Plasma Power Ltd Waste to energy conversion technology developer GB Leveraged Green Energy LLC 12 Minority stake FLS Energy Inc. Photovoltaic solar systems developer; Photovoltaic solar systems installation services; Photovoltaic solar systems manufacturer; Residential wind turbines installation services; Solar energy project design and installation services US New Energy Capital Corporation; North Sky Capital LLC 12 Minority stake Alphabet Energy Inc. Thermoelectric material technology developer; Waste heat recovery technology developer US Claremont Creek Ventures; TPG Capital LP; California Clean Energy Angel Fund I LP Page 4
1: PE, VC and DC Private equity, venture capital and development capital deals by value Deal value Deal type Target Target business description Target country Equity provider Deal status 12 Minority stake Advanced Plasma Power Ltd Waste to energy conversion technology developer GB Leveraged Green Energy LLC 10 Minority stake Powergetics Inc. Intelligent energy storage systems development services US 9 Minority stake FilterBoxx Water and Environmental Corporation Oil and gas industry packaged water treatment systems manufacturer; Oil and gas industry packaged water treatment systems wholesaler; Water and wastewater treatment facilities operator 9 Minority stake SMS Paryavaran Ltd Public works construction services; Water and wastewater treatment services 9 Minority stake MTPV LLC Electricity generators developer; Waste heat convertor developer and producer CA EnerTech Capital Partners LLP; XPV Capital Corporation IN Aditya Birla Capital Advisors Pvt Ltd US Applied Ventures LLC; Ensys Capital LLC; Spinnaker Capital LLC Announced 4 Minority stake ChargeMaster plc Electric vehicle infrastructure developer GB Envestors Ltd 3 Minority stake Ardenham Energy Ltd Solar energy installation services GB Bridges Ventures Ltd 1 Minority stake Harvest Power Inc. Renewable energy technology developer US Page 5
1: PE, VC and DC Target countries by volume: private equity, venture capital and development capital deals Target countries by value: private equity, venture capital and development capital deals Target country Sep-10 Aug-11 Sep-11 Target country Sep-10 Aug-11 (mil USD Sep-11 US 8 6 11 UK 5 3 5 Germany 0 1 2 Finland 0 0 1 Norway 1 0 1 Belgium 0 0 1 Italy 1 2 1 Canada 2 0 1 India 1 0 1 US 1,053 108 179 UK 88 7 31 Canada 7 0 9 India 0 0 9 Page 6
1: PE, VC and DC Private equity, venture capital and development capital investors Company name Number of deals Number with consideration Total deal value Average deal value 1 Hanwha International LLC 1 1 50 50 2 Black Coral Capital 1 1 50 50 3 Claremont Creek Ventures 2 2 37 19 4 Molycorp Inc. 1 1 35 35 5 New Enterprise Associates Inc. 1 1 35 35 6 Clean Pacific Ventures LLC 1 1 25 25 7 Sand Hill Angels Inc. 1 1 25 25 8 ABS Capital Partners LP 1 1 25 25 9 Kleiner Perkins Caufield & Byers 1 1 25 25 10 Google Ventures 1 1 25 25 11 Leveraged Green Energy LLC 2 2 24 12 12 California Clean Energy Angel Fund I LP 1 1 12 12 13 North Sky Capital LLC 1 1 12 12 14 TPG Capital LP 1 1 12 12 15 New Energy Capital Corporation 1 1 12 12 16 XPV Capital Corporation 1 1 9 9 17 EnerTech Capital Partners LLP 1 1 9 9 18 Aditya Birla Capital Advisors Pvt Ltd 1 1 9 9 19 Applied Ventures LLC 1 1 9 9 20 Spinnaker Capital LLC 1 1 9 9 21 Ensys Capital LLC 1 1 9 9 22 Envestors Ltd 1 1 4 4 23 Bridges Ventures Ltd 1 1 3 3 24 Atlas Investment Fund LLC 2 0 n.a. n.a. 25 Updata Management 1 0 n.a. n.a. Page 7
2: Mergers, Acquisitions, Joint Ventures Lack of high-value deals targeting cleantech companies Deals by volume and value Weaker private equity investment in cleantech companies was overshadowed by a general lack of high value deals targeting the sector in September. Announced date No of deals Total deal value The number of announced transactions was consistent with August levels, but value slipped by more than a third month-on-month and was 71 per cent lower year-on-year. In monetary terms, September s result was the weakest since November 2010. Sep-11 126 2,971 Aug-11 125 4,555 Jul-11 179 14,558 Jun-11 194 5,895 May-11 155 10,898 Apr-11 193 11,608 Mar-11 167 6,093 Feb-11 151 3,958 Jan-11 162 6,198 Dec-10 168 10,803 Nov-10 166 2,864 Oct-10 153 3,728 Sep-10 145 10,136 Page 8
2: Mergers, Acquisitions, Joint Ventures Deals by volume and value 16,000 250 Deal value 14,000 12,000 10,000 8,000 6,000 200 150 100 4,000 2,000 50 0 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 0 Total deal value Number of deals Page 9
2: Mergers, Acquisitions, Joint Ventures Top 20 deals by value Deal value Deal type Target Target business description Target country Acquiror Deal status 1 370 Minority stake 24% Sigdo Koppers SA Automobile inputs wholesaler holding company, Commercial and industrial appliances manufacturer holding company services; Diversified holding company; Explosives and blasting agents manufacturer holding company; Hydrogen production plant operator holding company; Industrial building construction services holding company; Industrial, mining and energy engineering services holding company; Plastic packaging films manufacturer holding company 2 325 Minority stake 50% Gunfleet Sands 172MW offshore wind farm Wind power energy production services GB Marubeni Corporation Pending 3 292 Acquisition 100% Jiangxi Risun Solar Energy Co., Ltd Photovoltaic cell and modules manufacturer CN Zhuhai Boyuan Investment Co., Ltd Pending 4 278 Minority stake Enbridge Income Fund Open-ended trust CA Enbridge Income Fund Holdings Inc. Announced 5 235 Acquisition 100% Power Holdings Inc. Specialist power distribution, conditioning and monitoring systems manufacturing holding company; Specialist power distribution, conditioning and monitoring systems wholesaling holding company 6 223 Minority stake 29% Enbridge Income Fund Holdings Inc. Low-risk energy infrastructure assets investment holding company CL Pending US Smiths Interconnect Inc. 7 114 Acquisition 90% Xinjiang Fuyuan Energy Development Co., Ltd Hydropower station operator CN Sichuan Guangan AAA Public Co., Ltd 8 100 Acquisition 100% Bid 2 increased offer 9 82 Acquisition increased from 100% to 100% 10 71 Acquisition increased from 50% to 100% Elstar Oils SA Rapeseed oil, vegetable oils and fats producer PL Archer Daniels Midland Nederland BV Hong Kong Chaori Solar Energy Science & Technology Co., Ltd Solar power plant project investment services HK Shanghai Chaori Solar Energy Science & Technology Co., Ltd CA Pending Pending Pending Announced Tropical BioEnergia SA Ethanol refinery services BR BP plc Pending Page 10
2: Mergers, Acquisitions, Joint Ventures Top 20 deals by value Deal value Deal type Target Target business description Target country Acquiror Deal status 11 67 Acquisition Conelgro BV; Claessen ELGB NV; GFI Gesellschaft für Installationstechnik mbh; GFI Gesellschaft für Installationstechnik GmbH 12 58 Minority stake 46% Sichuan Datang International Ganzi Hydroelectricity Development Co., Ltd Electronic products wholesaler; Electrical products wholesaler; Electrical installation products wholesaler; Electric installation products wholesaler 13 55 Minority stake 29% Enbridge Income Fund Holdings Inc. Low-risk energy infrastructure assets investment holding company 14 53 Acquisition 100% Barrow Offshore Wind farm's transmission assets 15 50 Minority stake OneRoof Energy Inc. Solar energy generation systems developer and manufacturer; Solar energy generation systems installation retailer; Solar energy generation systems installation services 16 42 Minority stake less than 1% Statoil ASA Oil and gas exploration and production services; Renewable energy producer 17 41 Acquisition increased from 100% to 100% CECEP Solar Energy Technology (Zhenjiang) Co., Ltd NL; BE; DE, AT Solar A/S Hydropower station construction services CN China Datang Group Corporation; Ganzi Gantou Hydropower Co., Ltd Announced CA Enbridge Inc. Announced Wind-powered electricity generation GB TC Barrow OFTO Ltd US NO Black Coral Capital; Hanwha International LLC Solar battery manufacturer CN Jiangsu Dagang Co., Ltd; CECEP Solar Energy Technology Co., Ltd 18 35 Minority stake Core Wind Power Inc. Wind turbine generator developer US New Enterprise Associates Inc.; Molycorp Inc. 19 34 Minority stake Run Long Construction Co., Ltd Real estate developer; Waste treatment services TW Pending Announced 20 31 Acquisition 60% Guangshui Anjiang Hydropower Development Co., Ltd Hydro electric power generation service CN Guangdong No.2 Hydropower Engineering Co., Ltd Announced Page 11
2: Mergers, Acquisitions, Joint Ventures Target countries by volume Target countries by value Target country Sep-10 Aug-11 Sep-11 Target country Sep-10 Aug-11 Sep-11 US 24 28 22 UK 13 9 18 China 10 11 16 Germany 8 9 10 Australia 3 6 7 Canada 12 4 7 South Korea 7 3 5 Norway 1 2 4 Japan 4 0 3 Spain 3 5 3 Finland 2 0 3 India 2 0 3 Italy 9 8 3 Belgium 1 0 2 Malaysia 1 2 2 Netherlands 1 3 2 Sweden 5 5 2 Latvia 0 1 2 Brazil 2 2 2 China 372 807 676 Canada 159 5 567 UK 189 132 443 US 2,503 659 418 Chile 3 89 370 Poland 0 113 100 Hong Kong 64 16 82 Brazil 257 681 81 Germany 92 1 72 Austria 0 7 67 Netherlands 0 0 67 Belgium 2 0 67 Norway 3 27 44 Taiwan 52 200 34 South Korea 41 14 23 Sweden 12 52 21 Australia 11 29 20 India 5 0 9 Japan 4,773 0 4 Cambodia 2 4 3 Page 12
3: IPOs IPOs by volume and value Announced date No of deals Total deal value Sep-11 1 115 Aug-11 1 0 Jul-11 9 3,083 Jun-11 4 844 May-11 5 969 Apr-11 5 278 Mar-11 4 95 Feb-11 3 267 Jan-11 3 40 Dec-10 5 2,168 Nov-10 8 351 Oct-10 7 4,111 Sep-10 9 1,435 Page 13
Notes to editors The search criteria uses a key word system based on the targets business description The key words are: alternative energy, alternative power, bio-diesel, biodiesel, biomass, bioenergy, bio energy, bio-energy, biofuel, fuel cell, geothermal, geothermal, hydrogen, hydropower, hydro-power, photovoltaic, renewable energy, reuseable energy, re-usable energy, solar, waste to energy, wind power, wind farm and wave power, energy resource management, electric vehicle, water purification, intelligent power, air quality, energy efficiency, thin film energy, thin-film energy, energy efficiency software, energy storage, battery power, water treatment, waste, biogas, anaerobic digestion, wastewater, green construction, green buildings, smart meter, smart grid, energy monitoring, marine energy, solar thermal, algae, green energy, cleantech, clean tech, environmental technology, greentech, fuel cell, charging station, green infrastructure, clean energy Activity is based on the activity of the target company Deal status is announced, completed, pending or unconditional Page 14