Environmental Capital Partners Acquires Intechra Holding Corp.’s Assets
Environmental Capital Partners (ECP), a New York City-based private equity firm, and its affiliates have announced the acquisition of the assets of Intechra Holding Corp. (IHC). Terms of the agreement were not disclosed. (For a profile of Intechra, see "A Considered Approach" in the Sept./Oct. 2007 issue of SDB.)
Intechra Group LLC, a newly formed company, purchased the IHC assets from its lender, Marathon Asset Management. Affiliates of Marathon also have become significant shareholders in Intechra by converting a substantial portion of Marathon’s debt in IHC to equity in the new company.
Intechra helps businesses retire IT assets in compliance with federal privacy regulations, environmental laws and internal corporate security policies. The company provides nationwide logistics, remarketing, redeployment and recycling services through a network of five operations centers and 11 logistics centers. All Intechra processes are ISO certified for quality and environmental management.
The IHC management team will continue in place with Intechra and "remains committed to the vision of being the global leader in electronics lifecycle management services," according to a press release issued by the companies involved.
"By providing industry-leading data security, environmental compliance and client service to many of the largest companies in the country, Intechra is a perfect fit with our broader mission to promote the growth of companies that enhance environmental sustainability," says Robert Egan, a managing partner of ECP. "Our investment provides the business with growth capital to expand and to capitalize on the tremendous growth opportunity in IT asset disposition services and global markets for refurbished equipment."
ECP is a private equity firm focused on growth and buyout investments of middle-market companies in the environmental industry. ECP says it typically seeks to invest $5 million to $25 million of its own capital in companies with sales of $20 million to $150 million.
Intechra CEO Michael Profit says, "This transaction validates our business strategy and confirms the market opportunity for responsible corporate electronics recycling and disposition." He adds, "Our relationship with ECP and Marathon will provide long-term financial strength and new growth capital for our business and enable us to build upon our leadership position by continuing to offer clients the highest level of service at a time when many others in the industry are struggling."
Marathon Asset Management LP is a global alternative investment and asset management company with more than $9 billion in capital under management. Marathon’s core businesses include hedge funds, structured finance, emerging markets, and real estate. Marathon is headquartered in New York City with investment offices in London and Singapore.