Tuesday, 4 July 2017

European Fresh HydroElectric Plants with Recurring, Growing Earnings - Powered by Green Energy Water Source




Business Description: The two hydroelectric plants operations generate 27.5 M-Watts and are located in the Europe Mediterranean area.  The Company, an American entity, is in a binding, contractual position to acquire 100% of 283 acres of land with includes the plants’ underlying approx. 20 acres of land and 49% ownership in the plants.  Upon title perfection of the land purchase, the Company believes that it is also in a position to purchase the remaining 51% plant ownership interest from a willing seller.  The land has all rights to underground spring water resources which per an engineering study has the water to generate a significant 5x more power via plant expansion with several new turbines.  The plants’ “high velocity” water source is due to its surrounding 5,000’ mountains of 55” avg. annual rainfall, which provides uninterrupted “green” (free) power.  The water resource contains applicable minerals that could also allow the Company to create a bottled spring water facility.

Distribution: The plants’ operations are located in a high demand market area with robust development potential including large sea-front development.  The Company is also in a political position to possibly acquire an additional two hydropower plants, thereby dramatically increasing its footprint by 49M-Watts.

Operational Strengths: The plants were refurbished by Siemens, a major German engineering firm, in 2006 for an expected 50-year useful life along with the typical approx. 90% EBITDA hydroelectric margin.

The Transaction: The Company expects to perform a structured transaction with a capital sponsor owning the majority interest in the plants and underlying land.  The Company hopes to transact with a party, having the depth of resources, who may also eventually elect to participate in plant expansion and in a number of the Company’s other lucrative, development opportunities.

Financial Summary

2016
2015
2014
2013
Revenue
$16.6MM
$16.1MM
$15.6MM
 $15MM
Adjusted EBITDA
$14.8MM
$14.3MM
$13.9MM
$13.5MM

Other Highlights
Location
Financials
Management Team in Place
Years in Business
SIC Classification
Europe
Advisory Source
Yes
Multi
4911




Direct All Inquiries to:
                                                                 Gottesman Company        
Refer to:  S-1862 JWT
Tel: 212-330-8010     Fax: 646-434-4557
3-10-17                                     E-mail: office@gottesman-company.com