Rock Energy Systems Acquires EnergyLogic
Rock Energy Systems, LLC, based in Janesville, Wis., has acquired its largest competitor, Nashville, Tenn.-based EnergyLogic LLC, to create the nation’s largest manufacturer and distributor of products in the waste oil space heater market. Rock Energy Systems will continue to operate EnergyLogic’s Nashville-area manufacturing and distribution facility at 5901 Crossings Blvd in Antioch, TN.
“We are excited about the opportunity to add EnergyLogic and its multiple brands to our family of brands to create a company that has a dominant position in the markets we serve, along with further diversifying our offerings to our customer base,” said Rock Energy Systems CEO Barry Brandt.
Waste oil heaters, which both companies manufacture, allow automotive repair and maintenance shops to heat their space by burning the oil drained from vehicles in an oil change. The genius of the technology is that, rather than paying to dispose of waste oil, it is turned into an asset that saves on energy bills.
“It has been an honor to work with the great team behind EnergyLogic, who have grown the company from a small player to a significant force in our industry over the last 18 years,” said Rob Stevens, EnergyLogic’s founder and CEO. “And now, as I move on to explore new opportunities, it is exciting for this company we’ve built to become #1 in our industry by merging with another great company, Rock Energy Systems.”
EnergyLogic was founded by Stevens in 2001 when he purchased the Black Gold waste oil heater company and rebranded it as EnergyLogic. He later purchased the Firelake waste-oil heater company and expanded the company’s reach by adding VAL6 portable radiant heaters and MacroAir high-volume low-speed (HVLS) fans to its product line. Since 2001, the company has grown its market share from 6 percent to over 30 percent, distributing waste oil heaters and fans throughout North America, as well as in Russia, Japan and several other countries. Its distribution partners include a network of independent dealers as well as national partners such as NAPA, CARQUEST, Advance Auto, O’Reilly’s and AutoZone.
Harpeth Capital served as Financial Advisor to EnergyLogic in connection with the transaction while LBMC advised on tax and accounting. Bone Law was the legal representative.
EnergyLogic was Stevens’ second company. His first, Material Handling Resources, distributed forklifts, racks and other tools and materials used by warehouses and distribution companies. The company was sold to Ozburn-Hessey Co. in 2000. His third company, of which he is one of the founding partners and serves as president, is Big G Creative, which manufactures and distributes board games.