Lazard Middle Market Advised Marathon Asset Management
on its Sale of Certain Assets of Intechra Holding Corporation
to Environmental Capital Partners
TRANSACTION DESCRIPTION
Lazard Middle Market advised Marathon Asset Management on its sale of certain assets of Intechra Holding Corporation to Environmental Capital Partners. Intechra helps Fortune 1000, large and medium-sized businesses retire IT assets in compliance with federal privacy regulations, environmental laws and internal corporate security policies.
TRANSACTION HIGHLIGHTS
Environmental Capital Partners (ECP), a New York based private equity firm, with its affiliates acquired certian assets of Intechra Holding Corporation (IHC), the largest independent IT asset disposition company in the United States. The IHC assets were purchased from its lender, Marathon Asset Management (Marathon), through Intechra Group, LLC (Intechra), a newly formed company. Affiliates of Marathon have also become significant shareholders in Intechra by converting a substantial portion of Marathon’s debt in IHC to equity in the new company. The IHC management team will continue in place with Intechra and remains committed to the vision of being the global leader in electronics lifecycle management services. Terms of the agreement were not disclosed.
“We are delighted with our investment in Intechra. By providing industry leading data security, environmental compliance and client service to many of the largest companies in the country, Intechra is a perfect fit with our broader mission to promote the growth of companies that enhance environmental sustainability,” said Robert Egan, a managing partner of ECP. “Our investment provides the business with growth capital to expand and to capitalize on the tremendous growth opportunity in IT asset disposition services and global markets for refurbished equipment.”
“This transaction validates our business strategy and confirms the market opportunity for responsible corporate electronics recycling and disposition,” Intechra CEO Michael Profit said. “Our relationship with ECP and Marathon will provide long-term financial strength and new growth capital for our business and enable us to build upon our leadership position by continuing to offer clients the highest level of service at a time when many others in the industry are struggling.”
“Marathon has had the opportunity to work with IHC for almost two years and we continue to be impressed with the strength of its management team and its reputation in the IT services industry,” said Jason Friedman, a managing director at Marathon. “We are committed to ensuring that Intechra continues to be an industry leader that excels at data security, environmental stewardship and financial return for enterprise clients.”
THE COMPANY
Intechra Group, LLC (www.intechra.com) helps Fortune 1000, large and medium-sized businesses retire IT assets such as personal computers, servers, networking equipment, and data center equipment in compliance with federal privacy regulations, environmental laws and internal corporate security policies. The company provides nationwide logistics, remarketing, redeployment and recycling through a network of five operations centers and 11 logistics centers. All Intechra processes are ISO certified for quality and environmental management. The company adheres to very strict standards, including a zero-landfill policy and thorough downstream diligence.
THE BUYER
Environmental Capital Partners (www.ecpcapital.com) provides long-term capital and management support to leading middle-market companies in the environmental industry with a focus on companies that provide goods and services to prevent, limit, or correct environmental damage to water, air, soil, or human health. Based in New York, ECP typically seeks to invest $5 to $25 million of its own capital in companies with sales of $20 to $150 million. ECP’s model is to invest in established businesses with strong growth potential that can benefit from its financial, operational and strategic resources.
THE SELLER
Marathon Asset Management LP (www.marathonfund.com) is a global alternative investment and asset management company with over $9 billion in capital under management. Marathon’s core businesses include hedge funds, structured finance, emerging markets, and real estate. Founded in 1998, the firm has over 140 professionals worldwide with headquarters in New York City and investment offices in London and Singapore. The firm's investment management team specializes in global debt, including high yield, bank debt, distressed debt, emerging market debt, special situations, structured finance, structured debt transactions and real estate opportunities and investments.
ABOUT LAZARD MIDDLE MARKET
Lazard Middle Market LLC (www.lazardmm.com), a subsidiary of Lazard Ltd (NYSE:LAZ), provides advice on strategic planning and M&A, private placements, capital raising, and restructurings to the middle market. Lazard Middle Market’s investment bankers operate with full access to the industry expertise, senior board-level relationships, and local perspectives of Lazard’s bankers in 39 cities across 24 countries in North America, Europe, Asia, Australia, Central and South America.
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