Electronics Recycling

 Environmental Capital Partners Acquires Intechra Holding Corp.’s Assets

Environmental Capital Partners (ECP), a New York City-based private equity firm, and its affiliates have announced the acquisition of the assets of Intechra Holding Corp. (IHC). Terms of the agreement were not disclosed. (For a profile of Intechra, see "A Considered Approach" in the October 2007 issue of Recycling Today.)

Intechra Group LLC, Jackson, Miss., a newly formed company, purchased the IHC assets from its lender, Marathon Asset Management, New York. Affiliates of Marathon also have become significant shareholders in Intechra by converting a substantial portion of Marathon’s debt in IHC to equity in the new company.

Intechra is an IT asset disposition firm and recycler that 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 IHC management team, led by CEO Michael Profit, remains in place with 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," says 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."

ECP is a private equity firm focused on growth and buyout investments of middle-market companies in the environmental industry. ECP says it typically seeks to invest $5 to $25 million of its own capital in companies with sales of $20 to $150 million.

Marathon Asset Management is a global alternative investment and asset management company managing more than $9 billion in capital.

Profit says, "This transaction validates our business strategy and confirms the market opportunity for responsible corporate electronics recycling and disposition." He adds, "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."

Jason Friedman, a managing director at Marathon, says, "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. 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."