Basalt Infrastructure Partners II LP and its consortium partner, DCO Energy, today announced an agreement to acquire Detroit Renewable Energy (DRE). The proposed acquisition will benefit DRE’s employees, customers, and Detroit community members.
Created in 2010, DRE is the parent company to Detroit Thermal, Detroit Renewable Power, and Hamtramck Energy Services. Together, these companies provide the Detroit community with clean energy and waste disposal. DRE’s Detroit Thermal, Detroit’s underground energy steam system, has heated some of Detroit’s landmark buildings and businesses for more than 100 years.
“Detroit Renewable Energy has played a key role in Detroit’s renaissance over the past seven years,” says Steve White, president of DRE. “In partnership with Basalt and DCO, the company will be in an even stronger position to support the City’s growth and success for many years to come. This will benefit all stakeholders as Basalt and DCO possess the experience, expertise, and resources to partner with the community and build upon our strong record of delivering clean, reliable, and cost-effective renewable energy to critically-important businesses across the City of Detroit.”
Basalt and DCO Energy will provide the necessary capital and technical resources for DRE to improve its energy infrastructure. DRE’s customers will continue to be served locally by staff at the central plants but with the financial support of national energy services.
“For DRE customers and stakeholders, it will be business as usual,” adds Rob Gregor, Basalt managing partner. “We will maintain the company’s Detroit headquarters and local management team and, as long-term investors, we are committed to maintaining safe and reliable service and investing in DRE and the communities it serves.”
Bracewell LLP served as Basalt’s primary legal advisor. King & Spalding LLP served as primary legal advisor to DRE in the transaction.