Midstate Holding Corp., a portfolio company of Bow River Capital Partners (“Bow River”) and parent company to Midstate Energy, LLC (“Midstate”), completed the acquisition of Urban Energy Solutions (“Urban”) on March 1, 2018. The acquisition comes one year following Bow River’s initial investment in Midstate, a platform that was established to provide comprehensive infrastructure upgrades and energy efficiency solutions to the Arizona K-12 schools and municipal markets. The business combination strengthens the electrical contracting, solar, and battery storage capabilities of Midstate while expanding on existing HVAC, lighting, and water capabilities.
Midstate and Urban are alike in their consultative customer approach, with the ability to self-perform across select HVAC, lighting, solar, and water solutions. As a result, the business combination will improve the depth of both organizations, position the business to meet the ongoing energy efficiency and power generation needs of their consolidated customers, and remain committed to the advancement of complex engineered solutions to help manage building life cycle requirements.
Urban will serve as an operating subsidiary of Midstate Holding Corp. All members of the senior management team will continue in their respective roles at Urban in collaboration with the management team at Midstate. As Chief Executive Officer, John Hobbes commented: “We are excited for our employees and customers with this next step in our growth. This unification will allow us to position more in-house expertise behind our commitment to putting clients at the center of all we do.”
Urban’s President, Justin Rojas added: “Over the last three years, the Midstate and Urban partnership grew from a simple ESCO and subcontractor relationship to an intertwined business model. This transition only solidifies our mature relationship and business will continue as usual. All of our products provided at Urban justify the Midstate model of self-performance.”
Midstate 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 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.
Urban was founded in 2005 as a HVAC controls and electrical contracting business. The company is a leading integrator of energy management systems, including HVAC controls, lighting, solar, and battery storage. Urban supports numerous leading construction partners, provides comprehensive energy management solutions direct to owners and manages projects under performance contracts, as a partner to Midstate.
About Bow River Capital
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 across a geographic area the principals refer to as Bow River Capital’s Rodeo Region®, which encompasses the Rocky Mountains and surrounding states.