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SALT LAKE CITY — EnergySolutions announced Monday it plans to be acquired by private equity firm Energy Capital Partners in a deal worth $1.1 billion.
A statement from EnergySolutions said Energy Capital is one of the largest energy-focused private equity firms in the world.
In the statement, the CEO of EnergySolutions said the transaction will allow the company to continue its strategic plan, by providing the investment capital to expand and grow the business.
Tyler Reeder, a partner at ECP, said of EnergySolutions, "The company employs an exceptionally talented workforce experienced in providing critical services to commercial customers and governmental agencies with a strong track record of environmental stewardship."
- A private equity firm with offices in Short Hills, NJ and San Diego, Calif.
- Over $7 billion of capital commitments under management.
- Focused on investing in the power generation, electric transmission, midstream gas, renewable energy, oil field services and environmental services sectors of North America's energy infrastructure.
ECP plans to operate EnergySolutions as a standalone business with the current management team remaining in place.
EnergySolutions has facilities across the country but is headquartered in Salt Lake City, with a major radioactive waste disposal facility in Tooele County.
Tooele County Commissioner Bruce Clegg was informed of the deal Monday morning. He said company officials told him nothing will change.
"Basically everything stays the same out there," Clegg said. "They are going to treat the Clive unit as one unit, keep the staff and employees out there, and keep calling it ‘EnergySolutions' out there."
For opponents of EnergySolutions, the pending sale is setting off alarms.
"There is a couple of words in their very first press release which indicate that they think there is tremendous potential for growing the nuclear waste business, and that means tremendous potential for a lot more nuclear waste in Utah," said Matt Pacenza, policy director for the environmental group HEAL Utah.
We have a lot of material you are not supposed to bring to Utah; and when a company jumps in and buys it and talks about tremendous growth, then we probably all should be concerned.
–Matt Pacenza, HEAL Utah
Pacenza also fears the new owner will focus on cutting costs to pump up the value of the company, and then sell it.
"We have a lot of material you are not supposed to bring to Utah; and when a company jumps in and buys it and talks about tremendous growth, then we probably all should be concerned," he said.
State lawmakers responsible for regulating the company see EnergySolutions as an economic driver and had guarded responses when asked about the company's future in Utah.
"They add to the economy. They employ people here. Their facility in the west desert is a storage place for low-level radioactive materials. They do a good job out there," said Senate President Wayne Niederhauser.
"I think this will only help them," said House Majority Leader Brad Dee. "I think it could prove to be very good for the stat of Utah. I've always found them very easy to work with and willing to — I think they are a good private partner for the state of Utah."
The acquisition still needs regulatory approvals and the approval of EnergySolutions' stockholders. Barring any objections, the deal becomes final in 30 days.
Regardless, EnergySolutions will remain on the arena where the Utah Jazz play. It's contractually obligated to stay that way for at least another four years.
