October 2007
Los Angeles, California (October 1, 2007) Catalytica Energy Systems, Inc. (Nasdaq: CESI) has merged with Renegy Holdings, Inc. (Nasdaq: RNGY), a holding company owning the renewable energy divisions of NZ Legacy, LLC, in an all-stock transaction. Hadley Partners, Incorporated advised Catalytica with respect to the “go shop” activities stipulated in the definitive Contribution and Merger Agreement. This is the third assignment completed by the bankers of Hadley Partners on behalf of Catalytica since 2006.
After the merger, Renegy is composed of two divisions that serve the clean energy sector. One division is focused on becoming an independent power producer (IPP) of renewable energy, and the second division provides emissions compliance services to the coal-fired power generation industry. Under the first division, Renegy’s mission is to utilize existing technologies to supply clean, renewable and economical power, with the vision of becoming one of the leading renewable energy IPPs in the U.S. The renewable energy market is growing quickly and is expected to reach $225 billion in annual revenue by 2016. In addition to owning a 24 megawatt (MW) biomass plant, which is a $70 million project currently under construction in Snowflake, Arizona and expected to begin operating in the first half of 2008, Renegy will endeavor to create multiple renewable energy projects over a five-year period through acquisition, construction, installation and operation. The second division, named SCR-Tech, has been fully commercialized and focuses on providing catalyst modules and management services aimed at cost effective and efficient emissions compliance at coal-fired power plants. SCR-Tech’s market is set to expand dramatically given the strict regulations being phased in regarding power plant emissions.
About Catalytica Energy Systems
Prior to the aforementioned transaction, Catalytica Energy Systems was focused on growing its SCR-Tech business as well as pursing a range of growth opportunities in the clean energy sector. The company had recently completed a successful restructuring of operations in which several developmental operations were sold or discontinued.
About NZ Legacy
NZ Legacy is a holding entity involved in a variety of energy industry endeavors. It owns 86,000 acres of land in Arizona and New Mexico and more than one million acres of mineral rights spread across Arizona, New Mexico and Colorado. The company’s founder purchased the rural land assets of New Mexico and Arizona Land Company, Inc. in March 2002 and subsequently formed NZ Legacy and its fifteen operating subsidiaries, including the three entities focused on renewable energy projects and harvesting biomass material – Snowflake White Mountain Power, LLC, Renegy, LLC, and Renegy Trucking, LLC.
About Hadley Partners (www.hadleypartners.com)
Founded in 1999, Hadley Partners provides the highest-quality merger & acquisition advisory, private placement and financial advisory services. We have a world-class team of veteran bankers that bring Wall Street experience to middle-market and emerging growth companies. Our goal is to develop relationships of trust with the leaders of these companies and with investors that pursue investment opportunities in such companies. We provide our services in a fair and flexible manner, and we always put our clients’ interests first. Hadley Partners is a registered broker-dealer, and a member of the Financial Industry Regulatory Authority (formerly the NASD) and the Securities Investor Protection Corporation.
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