O2 Investment Partners has acquired EMEX, a provider of energy-related software and consulting services. Tree Line Capital Partners provided debt financing and also made an equity co-investment in this transaction.
EMEX’s enterprise software is used to uncover the lowest rates for electricity and natural gas supply, specifically in commercial and industrial end markets, and facilitates the brokerage of electricity and natural gas procurement in regulated and deregulated markets across the United States. EMEX was founded in 2007 and is headquartered in Houston, with additional operations in Dallas and Waco, and Trenton, NJ (www.energymarketexchange.com).
O2 partnered with EMEX’s President Dan Marzuola and his management team on this transaction. “We are thrilled we found a partner to help facilitate rapid growth and create a global presence,” said Mr. Marzuola. “Our company and platform are in a tremendous position to scale, and O2 is the right partner to help us achieve our goals. We look forward to an incredible partnership with O2.”
O2 makes control investments of $5 million to $75 million in companies with EBITDAs from $2 million to $10 million located anywhere in the US and Canada but has a preference for the Midwest and the Great Lakes regions. Sectors of interest include niche manufacturing, niche distribution, select service businesses, and certain technology businesses. In October 2017, the firm held a final closing of its Oxygen Fund with an above-target $100 million of capital commitments. O2, based in the Detroit suburb of Bloomfield Hills, is backed by the Orley family which has been investing in operating businesses and real estate since 1950 (www.o2investment.com).
“We are very excited to partner with Dan and his team. EMEX has created a differentiated service offering in a very fragmented industry that offers significant growth potential. Our goals are to support the EMEX team in accelerating growth and to be a true partner for their future,” said Luke Plumpton, a Partner at O2.
Tree Line Capital Partners provided a first lien credit facility and also made an equity co-investment to support O2’s investment in EMEX. “The investment in EMEX highlights Tree Line’s ability to provide a comprehensive debt and equity solution and reliably close in an efficient manner,” said Frank Cupido, a Partner of Tree Line. “Tree Line is thrilled to have the opportunity to partner with O2, Dan Marzuola and his management team.”
“We appreciate Tree Line’s support in building the EMEX platform,” added Mr. Plumpton. “Tree Line ran an efficient underwriting process and proved to be a quick study of the business, which led to a seamless deal process.”
Tree Line is a direct lender focused on providing first lien term loans, unitranche term loans and equity co-investments to North American-based lower middle market companies with at least $3 million of EBITDA. Since inception in October 2014, Tree Line has completed over 50 transactions representing over $720 million in loan commitments for acquisitions, recapitalizations, refinancings, expansion projects and other growth capital needs. Tree Line is headquartered in San Francisco with additional offices in New York and New Orleans (www.treelinecp.com).
© 2018 Private Equity Professional | June 21, 2018