Brass Ring Sells Franklin Energy Services to Cortec Group

Brass Ring Capital has sold Franklin Energy Services to the Cortec Group.The deal closed Oct. 7. Financial terms were not announced. Brass Ring, of Milwaukee, is a private investment firm while Cortec is a New York PE firm. Port Washington, Wis.-based Franklin Energy is an energy efficiency program management company. Harris Williams, which advised Franklin Energy, disclosed the sale Monday.

PRESS RELEASE

Harris Williams & Co. is pleased to announce the sale of Franklin Energy Services, LLC (Franklin), a portfolio company of Brass Ring Capital (Brass Ring), to Cortec Group (Cortec). The transaction closed on October 7, 2010. Harris Williams & Co. acted as the exclusive advisor to Franklin Energy. The transaction was led by Drew Spitzer and Matt White from Harris Williams & Co.’s Energy & Power (E&P) Group along with Glenn Gurtcheff, head of the firm’s Minneapolis office.

“As one of the nation’s largest energy efficiency program managers, Franklin Energy has consistently exceeded its customers’ energy savings goals by designing and implementing highly customized energy efficiency programs,” noted Drew Spitzer, managing director and co-head of Harris Williams & Co.’s E&P Group. “The U.S. is experiencing an unprecedented groundswell of support from individuals, businesses and government to lower energy costs and establish energy independence. Increasing energy efficiency represents the most practical and cost effective method to achieve the goal of energy independence. Industry leaders, such as Franklin Energy, are poised to continue to benefit from the strong growth trends in the energy efficiency segment.”

Franklin is one of the largest energy efficiency program management companies in the U.S. The company designs and implements customized programs for utilities to promote the efficient consumption of electricity and natural gas. Utilities depend on Franklin’s energy efficiency solutions to economically manage long-term demand growth and comply with legislative and regulatory policies that mandate reduced consumption.

Brass Ring is a private investment firm focused on addressing the equity and liquidity needs of small businesses in the Upper-Midwest. Brass Ring’s team works in partnership with owners and managers to facilitate ownership transitions of profitable, niche companies. Established by David J. Raffel and Steven D. Peterson, Brass Ring’s mission is to empower promising small businesses with the resources to achieve their potential.

Cortec is a New York-based private equity firm which acquires high value-added, lower-middle market specialty manufacturing, distribution and service businesses with leadership positions in their market niches. Cortec manages approximately $750 million of committed capital which it uses to acquire platform companies with enterprise values of $30 million to $300 million as well as smaller follow-on acquisitions. Franklin Energy is Cortec’s seventh investment in Cortec Group Fund IV, L.P.

Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is the premier middle market advisor with a two-decade legacy of sell side excellence serving clients worldwide. The firm is focused exclusively on the middle market and provides sell side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services.

The firm’s E&P Group has experience across a broad range of sectors, including energy efficiency & cleantech, industrial & infrastructure services, oil & gas products and services, power equipment and services, engineering & construction, and environmental services. For more information, please contact Drew Spitzer at +1 (804) 648-0072.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, an Appointed Representative of Sturgeon Ventures LLP, which is authorized and regulated by the Financial Services Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.

For general release inquiries, please contact Kimberly Baker, marketing director, at +1 (804) 648-0072.