Case Studies


Sale of Lime Energy to Willdan Group

TRANSACTION OVERVIEW

  • On November 9, 2018, Lime Energy (OTC:LIME) was acquired by Willdan Group, Inc. (NASDAQ:WLDN) in an all-cash transaction valued at $120mm, including the assumption of net debt

LIME ENERGY OVERVIEW

  • With over 125,000 projects installed and $145mm in 2018E projected revenue, Lime Energy (“Lime”) is the standout, fully integrated building energy efficiency (EE) platform for small- and medium-sized U.S. businesses
  • Lime pioneered the Commercial Direct Install program, a utility-funded EE program that provides small- and medium-sized C&I customers with cost-effective energy efficiency retrofits
  • At its core, Lime provides turnkey solutions for utilities, including program design and administration, data-driven market intelligence, retrofit sales to end-customers, project implementation, and measurement and verification
  • Through its innovative technology-enabled sales platform, Lime has successfully driven down customer acquisition costs and improved service for its customers and clients

WILLDAN OVERVIEW

  • Willdan is a nationwide provider of professional, technical and consulting services for utilities, government agencies and private industry
  • With $273mm of revenue in 2017 and 22 offices across the country, Willdan is considered a leader in the electric grid solutions market
  • Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting
  • Willdan also does Demand Side Management and Commercial Direct Install program design and administration to utilities, similar to Lime

GREENTECH’S ROLE

  • Greentech served as the exclusive financial advisor to Lime and was closely involved in all aspects of the transaction
  • Greentech’s deep industry relationships, energy efficiency expertise and extensive transaction experience allowed Lime and its shareholders to maximize value by creating competitive tension and properly positioning the opportunity to appeal to a wide range of potential acquirers

WHAT THE TRANSACTION MEANS FOR THE ENERGY EFFICIENCY AND DEMAND-SIDE MANAGEMENT SECTORS

  • The acquisition of Lime is highly synergistic to Willdan, diversifying Willdan’s geographical presence, and adding a strong technology and sales platform to complement Willdan’s existing customer- and utility-focused offerings
  •  Traditionally underserved by utilities and ESCOs, small- and medium-sized businesses such as gas stations, laundromats and car dealerships present a significant and underserved opportunity for utilities seeking energy efficiency resources
  • Lime’s long-standing focus on this market positions Willdan to capture future demand by improving its offerings to both C&I customers and utility clients
  • The combination of Lime and Willdan positions the company for upcoming Northeast and California program expansions

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