The Problem: The market was not rewarding alternative energy stocks – investors were tired and capital was scarce. Significant capital required for commercializing.
Our Approach: We purchased a nitrogen fertilizer plant to assist the alternative energy business get to market without government subsidies.
We invested capital in the business and flipped the focus to become a nitrogen fertilizer business and sell the alternative energy business.
We spun out the fertilizer business into a separate public MLP and raised $300mm on NYSE. We now had two public companies with cash and significant cash flow
the results
$300MM
Raised significant capital for both entities. Fertilizer business poised for growth as was the parent with $200mm cash and a path to buy other entities.
$1.6B
The fertilizer company was purchased for $50mm and listed for $900mm on the NYSE ultimately going to $1.6 billion. Ebitda grew from $12mm – $120mm in 4 years.
200%
MLP stock returned 100% in following 12 months. Parent company stock returned 200% in year 1.