Emissions control manufacturing unit to be sold by Acorn Energy

Acorn Energy Inc. (Nasdaq: ACFN) signed an agreement to sell its CoaLogix Inc. unit for $101 million to funds managed by Energy Capital Partners (ECP). The deal is subject to regulatory approvals.

Acorn Energy owns approximately 65 percent of CoaLogix on a fully diluted basis, with the remainder held by EnerTech Capital and CoaLogix management. CoaLogix manufactures SCR catalyst and regeneration technologies that reduce NOx for coal-fired power plants.

Acorn created CoaLogix in November 2007 to purchase SCR-Tech LLC and its related entities. Acorn initially invested $11 million for all of CoaLogix and invested an additional $7.2 million for a total of $18.2 million, in addition to investments from EnerTech Capital Partners and CoaLogix management. Acorn anticipates that its proceeds from the sale of CoaLogix will be approximately $61.8 million pre-tax, or approximately $3.53 per outstanding Acorn share.

UBS Investment Bank acted as exclusive financial advisor to CoaLogix. Merriman Capital Inc. advised Acorn Energy in connection with the transaction.

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