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Caterpillar Inc. Acquires EnerTech Portfolio Company Tangent Energy Solutions


May 9, 2022, Toronto, ON and Philadelphia, PA – EnerTech Capital is pleased to announce that Caterpillar Inc. (NYSE: CAT) has acquired Portfolio Company, Tangent Energy Solutions (Tangent), a U.S.-based energy-as-a-service (EaaS) company providing customers with turnkey solutions for reducing energy costs, increasing energy efficiency, reducing emissions, monetizing electric grid support and providing resiliency for customer operations.


Headquartered in Kennett Square, Pennsylvania, Tangent provides commercial and industrial customers with the technology, insights, and resources needed to realize the economic benefit of the role their energy systems play in energy markets. By predicting and actively managing peak demand periods, Tangent reverses the business model of traditional demand response in favor of the customer.


Tangent was originally incubated in the EnerTech offices in 2009 when Dean Musser approached them with his initial business plan for Tangent. EnerTech had previously backed Dean as the CEO of Enerwise, a provider of fully integrated energy information and premium power solutions for power marketers, utilities, co-ops and municipalities and commercial and industrial (C&I) customers, which was successfully sold to Comverge in 2007. After leaving Comverge, Dean worked from the EnerTech offices, and the firm took a very active role in building out the original strategy for Tangent and provided linkages to a vast network of Corporate Strategics.


“EnerTech has been an investor and indispensable partner in Tangent’s origin, growth and success. Beyond their unwavering financial backing, EnerTech’s sector expertise, strategic insights and extensive network have all significantly contributed to our ability to be acquired by Caterpillar,” said Dean Musser, President and CEO of Tangent Energy Solutions.


Tangent’s proprietary Distributed Energy Resource Management System (DERMS) software solutions monitor patterns from grid and client facilities, analyze opportunities, and then dispatch resources to maximize return for on-site energy assets, without disrupting normal business operations. Managing over 6,000 MW (including natural gas and renewable power generation, storage, and microgrids) at nearly 6,500 customer sites, Tangent has proven to be especially beneficial to customers with high peak energy demands such as large commercial and industrial customers, data centers, mining operations, and energy utilities.


Caterpillar delivers innovative power systems engineered for sustainability, durability, reliability and value and the acquisition of Tangent better positions Caterpillar customers to improve the financial return on their power solutions as utilities increasingly use distributed energy resources to grow capacity, increase the utilization of renewable sources of energy on the grid, alleviate transmission and distribution constraints, offer generation balancing, and anticipate demand. Tangent Energy Solutions will continue to offer services under the Tangent Energy brand and operate under Caterpillar's Electric Power Division.


“Tangent’s acquisition by Caterpillar was noteworthy for us because it was the second time the same core management team has delivered a successful exit for EnerTech. This success is a testament to the Tangent team, but also to our firm’s ability to identify, attract and cultivate companies that drive value for our investors,” said Scott Ungerer, Founder and Managing Director of EnerTech Capital.


“Our investment in Tangent is a great example of how our firm provides a differentiated approach to adding value to help build successful companies through our strong focus and significant network of corporate strategics. We congratulate Dean Musser and his team at Tangent for building a great company and we truly value the relationship our firm has had with the Tangent team as they evolved their strategy since our initial investment in the company,” said Wally Hunter, Managing Director of EnerTech Capital.


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About Caterpillar Inc.


With 2021 sales and revenues of $51.0 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment.


Visit us at caterpillar.com or join the conversation on our social media channels.


About EnerTech Capital


The firm has been investing and partnering with innovators for over 25 years, empowering entrepreneurs to transform industries. EnerTech has pioneered an integrated approach to business building, leveraging strategic collaboration across a diverse stakeholder ecosystem to create value; with a focus on Mobility, Industry 4.0, and Connected Customer. Since our founding in 1996, we have made 73 investments and have managed over $500 million in LP Capital Commitments. We have had an active role in building world class management teams who have created new lasting ways to use energy resources more efficiently and have been a part of building companies that have, and continue to, transform industries.


EnerTech has offices in Toronto, Philadelphia, Palm Beach Gardens, Boston, and Sacramento.


For more information, visit: http://www.enertechcapital.com


CONTACT: Wally Hunter: 416-418-1505 or whunter@enertechcapital.com


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