Crews at an EnergySolutions radioactive waste handling facility manipulate a cask designed for the transport of highly irradiated components from decommissioned nuclear power plants. The firm has been sold in a $2 billion transaction. (Courtesy EnergySolutions)
Energy Capital Partners (ECP), a Summit, New Jersey, private investment firm specializing in energy infrastructure, has agreed to acquire Salt Lake City-based EnergySolutions.
The transaction is expected to close this year. Although the financial details of the buyout were not disclosed, industry sources place the value of the transaction in the neighborhood of $2 billion.
The previous owner, New York City-based TriArtisan Capital Advisors LLC, which had been an earlier minority stockholder with ECP, agreed to obtain a majority interest from ECP in November 2021 and closed on the transaction the following May. Therefore, the current purchase represents a reacquisition by ECP from TriArtisan. ECP had purchased EnergySolutions from public shareholders in 2013 in a “take-private” transaction.
EnergySolutions was formed through the acquisition of several companies by EnviroCare of Utah, which was founded by Khosrow Semnani in 1988. Semnani sold it to private investors led by Steve Creamer, who rebranded it to EnergySolutions and took the company public in 2007.
EnergySolutions is a nuclear industry service company providing solutions across the full nuclear lifecycle. It is best known in Utah for its major radioactive waste disposal operation at Clive in Tooele County. It provides services that include transportation, processing, recycling and disposal of radiological material. In addition to its Salt Lake City base, the company has an office in Charlotte, North Carolina. EnergySolutions operates across the United States, Canada, Asia and Europe. Its customer base includes the U.S. and Canadian governments, commercial nuclear power generators, research facilities, national laboratories and medical institutions worldwide.
“Today’s announcement marks an important milestone for EnergySolutions,” said Ken Robuck, resident and CEO of the firm. “Over the past several years, we have broadened our offerings across the nuclear sector and strengthened our ability to deliver integrated solutions for customers. We believe this transaction will accelerate our long-term strategy and growth. We are proud of the work our team delivers every day, and we’re excited to work with ECP again as we build on our momentum and continue investing in our people and capabilities.”
Robuck said ECP has a long-standing relationship with EnergySolutions and its management team, built through prior ownership.
ECP’s decision to acquire the business again comes at a time of transformational change for the nuclear sector, an EnergySolutions release explained. Nuclear energy has emerged as a critical component of U.S. energy security, with bipartisan policy support driving significant regulatory reform and a national ambition to materially expand domestic nuclear capacity over the coming decades. With surging demand for baseload power from manufacturing, liquid natural gas and data centers, utilities are extending reactor operating licenses rather than retiring assets, previously shuttered plants are being brought back on line and a new-build market is emerging. This is creating sustained, long-term demand for EnergySolutions’ waste management and nuclear services capabilities, the statement said.
The EnergySolutions name has been front and center in recent discussions as the state of Utah bids to host a federal nuclear hub in Tooele County where EnergySolutions currently operates its radioactive waste burial operation. In the state’s proposal, officials say Utah is “prepared to support” higher-level radioactive waste disposal. EnergySolutions recently received an inter-state panel’s approval to import 1.3 million cubic yards of low-level radioactive waste from Canada. If approved by U.S. and Canadian regulatory agencies, the operation would represent the first foreign nuclear waste brought to Utah.
“We’ve stayed connected with EnergySolutions and its leadership since we exited our previous investment, and we’ve been impressed by what the team has continued to accomplish,” said Drew Brown, a partner at ECP. “We see tremendous potential for its platform as the role of nuclear energy in meeting the rising need for reliable, baseload power continues to grow. “EnergySolutions has built deep expertise in supporting nuclear facilities safely and responsibly throughout their lifecycle. We’re excited to partner with them again as they continue serving their customers and contributing to a more secure energy future.”
“We are grateful for the EnergySolutions team and what they accomplished during TriArtisan’s ownership,” said Gerald Cromack, co-founding partner of TriArtisan as his firm exits its EnergySolutions involvement. “The company has strengthened its platform and expanded its capabilities across the nuclear services market while maintaining an unwavering focus on safety and execution. We believe ECP is an excellent next owner for EnergySolutions, and we are pleased to support this transaction as the company enters its next chapter.”
Energy Capital Partners, founded in 2005, has secured more than $36 billion in capital commitments from institutional investors globally. It is the infrastructure investment arm of Bridgepoint Group Plc, a London-based global middle-market private equity, credit and infrastructure firm.