Bow River Capital Completes Recapitalization of Midstate Energy


On February 8, 2017, Bow River Capital Partners acquired a controlling interest in Midstate Energy, LLC and select assets of Midstate Mechanical, Inc. The acquisition includes the Performance Contracting and Service Divisions of Midstate Mechanical, now collectively referred to as “Midstate Energy.” Bow River partnered with management to recapitalize the businesses, and the transaction provides for the separation of the operating divisions. John Hobbes will assume the role of Chief Executive Officer of Midstate Energy. Mr. Hobbes brings an accomplished career within the energy efficiency performance contracting industry.

Midstate Energy is an independent provider of comprehensive development, design and engineering services relating to infrastructure upgrades and energy efficient, asset sustainability solutions to the K-12 and municipal market in Arizona. Midstate Energy principally utilizes the performance contracting model and arranges external financing tied to the savings generated by the project. Energy savings are typically realized through the installation and use of energy efficient, updated equipment and controls, promoting long-term electricity and water conservation initiatives. The Service team will continue to provide project-based work and performance under maintenance agreements. The company’s customer-centric approach to service delivery and execution will continue, and will be paramount to ongoing growth.  With the acquisition by Bow River, Midstate Energy will begin to offer services and expertise in other markets of the Southwest.

Midstate Mechanical has displayed a long history of operating success in the Arizona marketplace, and has been a leading provider of mechanical contracting services to industrial and commercial clients since 1986. Midstate Mechanical will continue under the leadership of its founder, Dave Jones, as it has for the past 30 years. Midstate Energy management and Midstate Mechanical anticipate a collaborative relationship going forward.

FMI Capital Advisors provided transaction advisory services to Bow River Capital on the recapitalization, and Brownstein Hyatt Farber Schreck, LLP served as legal counsel.

G2 Capital Advisors was the exclusive sell-side advisor to Midstate Mechanical, and Plattner, Schneidman, Schneider and Jeffries, P.C. served as legal counsel.

About Bow River Capital Partners

Founded in 2003, Bow River is a private alternative asset management company based in Denver, Colorado, with buyout, real estate and energy fund platforms. Bow River’s buyout platform focuses on lower middle market operating companies, with an emphasis on human capital based businesses across a geographic area the principals refer to as Bow River Capital’s Rodeo Region®, which encompasses the Rocky Mountains and surrounding states.

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