MVC Private Equity Fund Agrees to Sell Plymouth Rock Energy

Source Press Release
Company ENGIE 
Tags Corporate Deals, Deals, Refining & Marketing Activities
Date October 30, 2018
  • Plymouth Rock Energy to Sell to ENGIE Resources
  • Second Monetization for MVC Private Equity Fund Anticipates Greater Than a 3X Gross Return on Equity

MVC Capital, Inc. (NYSE: MVC) (“MVC Capital”), a publicly-traded business development company that makes private debt and equity investments, announced that MVC Private Equity Fund, L.P. (“MVC PE Fund”) has agreed to sell its stake in Plymouth Rock Energy (“Plymouth”) to ENGIE Resources (“ENGIE”). Consummation of the transaction is subject to the satisfaction of certain closing conditions, including receiving approval from the Federal Energy Regulatory Commission. The anticipated closing is expected by November 30, 2018.  

On October 29, 2018, ENGIE agreed to purchase Plymouth, a leading retail energy provider of natural gas and electricity. As part of the transaction, MVC PE Fund is anticipating a gross return on its equity investment in Plymouth of approximately 3.4X (1), based on the equity investments made since November 2011 (2).  

“We are very pleased with the outcome of this transaction,” said Shivani Khurana, Managing Director of The Tokarz Group Advisers, LLC, the Portfolio Manager to MVC PE Fund. “Throughout the years of MVC’s involvement with Plymouth, we formed a collaborative partnership with management, helped them expand their market share and ultimately, sell the business at a favorable price.”

“The Plymouth team has built a leading energy marketing company in the Northeast through the hard work of its highly-skilled personnel and strong investment partners,” said Adam Sokol, President of Plymouth. “Since 2004, we have organically grown the business through strong customer relationships and customer service, and we believe that the business is well positioned for future growth under ENGIE,” said David Sokol, Vice President of Plymouth. 

“We are very happy with the purchase, and the fine job done by Plymouth staff to build this portfolio of customers,” said Graham Leith, Senior Vice President, Head of Retail, ENGIE Resources. “Plymouth’s customers will join our portfolio of over 25,000 commercial & industrial power & natural gas customers, expanding our market share in New York, and it should give us a much larger presence down-state.”

Since inception of the MVC PE Fund, MVC Capital invested a total of $14.6 million in the MVC PE Fund. With the expected exit of Plymouth, coupled with the sale of AccuMed in late 2016, the MVC PE Fund will have returned to MVC Capital $21.8 million or 150% of its total invested capital, with three investments remaining (3).

KeyBanc Capital Markets acted as the exclusive financial advisor to Plymouth Rock Energy. Locke Lord acted as the legal counsel for Plymouth. Plymouth Rock Fuel Corp., a separately operated entity not owned by Plymouth or MVC PE Fund, is not included as part of the transaction with ENGIE

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd