Tecogen closes acquisition deal with Ilios Dynamics
Tecogen Inc., manufacturer of natural-gas-fueled, engine-driven, combined heat and power (CHP) products, announced that they have made the acquisition of the remaining privately held minority interest in Ilios Dynamics materially complete as of Monday April 11, 2016. Over 90% of Ilios Dynamics shareholders have accepted Tecogen’s share exchange offer.
Tecogen co-CEO Benjamin Locked spoke about the transaction and noted,
“Ilios is a growing and increasingly important part of Tecogen’s product portfolio. We are glad to be bringing this complementary cogeneration technology fully into the Tecogen family, rounding out the product offering. With the new Gas Company selling agreement and additional dedicated sales representatives, we are optimistic about the Ilios sales pipeline.”
In 2015, Ilios delivered revenue and unit sales of more than double compared to any of their previous years. This was driven by the launch of the new Ilios split air sourced heat pump and new market penetration. Recently, Ilios has announced the first sale of the ultra-efficient heat pump into the hospitality industry, building on the success of the equipment in the multi-family residential segment.
Ilios Product Manager, Stephen Lafaille added, “With the new sales agents and continued push toward geographic expansion, along with recent sales wins, we are excited to continue building on the strong momentum from 2015 as a wholly owned part of the Tecogen family.”
The Ilios heat pump provides twice the efficiency of a conventional boiler while delivering 400,000– 600,000 BTU/hour of hot water. This hot water is ideal for space heating, precision industrial applications, swimming pools and spas and is delivered while producing near-zero emissions and cutting a facility’s carbon footprint in half. An Ilios unit can also be used as a dedicated heat recovery chiller to provide simultaneous heating and cooling, offsetting boiler usage by as much as 50% and peak shaving the central chiller—creating a significant savings for the facility. The Ilios line of water heaters meets the needs of customers by providing a reliable and consistent supply of hot water at a fraction of the price of conventional boiler equipment. When fitted with Tecogen’s patented Ultera low emissions technology, Ilios offers the most cost effective and environmentally friendly gas powered water heating solution on the market today.
Ilios shareholders exchanged their shares in Ilios Dynamics for 7.86 per one Tecogen Inc. share. This ratio was determined using a trailing 30 day average closing price for Tecogen shares of $3.93, taken as of March 4, 2016. In total at closing, Tecogen will issue approximately 670,000 shares to Ilios Dynamics shareholders, valuing the heat pump company at approximately $7.5 million.
Source: Tecogen