Finland-headed Outotec Oyj, a global technology supplier in energy, minerals and metals processing has announced that it intends to acquire all interests in Energy Products of Idaho Ltd Partnership, in Coeur d'Alene, United States (US). EPI is a supplier of renewable energy technologies, has pioneered in the area of biomass and difficult waste materials combustion and delivered over 100 renewable energy solutions.
According to a statement, Outotec strengthens its portfolio of energy and environmental technologies by acquiring all interests in EPI. The transaction is subject to regulatory approval and it is expected to be closed at the end of December 2011.
The acquisition price consists of two components: a fixed cash element of approximately EUR 43 million and an earn-out payment of EUR 25 million at maximum based on EPI’s financial performance in 2012 and 2013.
EPI has nearly four decades of operating experience and more than 100 fluidized bed energy system installations. The company employs 70 persons in Idaho, USA and is expected to generate approximately EUR 40 million sales and EUR 8 million operating profit in 2011.
The acquisition of EPI by Outotec will provide benefits for EPI’s existing customers and its employees. Customers will benefit from Outotec’s global sales and service network and its technological expertise in fluidized bed technology. In addition, I believe EPI’s employees will have more opportunities to develop their careers as a result of Outotec’s global business operations, said LeRoy Pope, General Manager of Energy Products of Idaho.
Service growing environmental and energy technology business
The acquisition supports Outotec’s growth strategy and is expected to increase Outotec’s sales by EUR 60-90 million annually, including synergies from stronger combined sales and service network. EPI’s solutions can be marketed through Outotec’s global network and various services can be offered to EPI’s large existing base of installed technology.
Furthermore, EPI serves as a platform for growing Outotec’s energy and environmental technology business in the US market. The acquisition is in line with Outotec’s long-term financial targets and does not impact the company’s financial guidance for 2011.
Outotec has a strong position in fluidized bed technologies and, as their original developer, has delivered over 260 fluidized bed plants for metallurgical and energy applications. EPI technologies complement Outotec’s fluidized bed technology platform and strengthen Outotec’s energy business.
EPI’s proprietary fuel thermal oxidation and gasification technologies recover energy from various biomass and wastes such as fresh and used wood, agricultural waste, demolition waste, manure, waste paper, paper sludge, oil sludge, municipal waste, and many other materials. EPI focuses on medium scale plants with a combustion capacity of up to 100 MW.
Energy Products of Idaho operates in the fast-growing renewable and waste-to-energy market. Its products and services fit seamlessly into Outotec’s technology portfolio. By combining our expertise and product portfolios we can provide sustainable technology solutions and services for the renewable energy sector and increase our market share, said Pertti Korhonen, CEO of Outotec.
