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 WHITE PLAINS, N.Y., Dec. 5 /PRNewswire/ -- Trigen Energy Corporation announced the completion on, Friday, Dec. 3, of the acquisition of over 90 percent of United Thermal Corporation (NASDAQ: UNTH). The announcement was made by Thomas R. Casten, president and chief executive officer of Trigen.
 Trigen acquired 83.5 percent of UTC stock from Catalyst Energy Corporation, a private New York City energy company, and has acquired in excess of 6.5 percent from certain other unaffiliated holders for $4.50 per share. Trigen will effect a merger on or before Dec. 20 under Delaware law which permits the merger without a shareholder vote. The remaining shareholders of United Thermal Corporation will have the right to receive the same $4.50 in cash, subject to the exercise of their appraisal rights.
 The merged company and its subsidiaries will operate under the parent company name, Trigen Energy Corporation.
 Trigen, a private company, had sales of $1.0 million in fiscal 1987 and $76 million in fiscal 1993 ending September 30, achieving a compound annual growth rate of 106 percent for six years. UTC had sales of $112 million in the most recent 12 months. The combined company will have assets of over $390 million and employ about 600 persons. Trigen has been named by Inc. Magazine for each of the past four years as one of the 500 fastest growing small companies in America.
 Trigen is the developer, owner and operator of seven community heating and cooling systems providing services to the central business districts of Trenton, N.J., Tulsa and Oklahoma City, Okla.; Nassau County, N.Y.; Kansas City, Mo., and London, Ontario (Canada). Trigen-Peoples Energy Corporation, a partnership, has just begun service under a 29-year contract to heat and cool McCormick Place in Chicago. The Trigen name emanates from "trigeneration," the simultaneous generation of 1) electricity or mechanical energy, 2) chilled water, and 3) heat from the same fuel. The company has developed special trigeneration machines to accomplish the above which consume one-half of the fuel per unit of chilling produced compared with the next best technology, and has patents pending on these machines, which are in operation at two locations.
 UTC operates in four major cities - Philadelphia, Boston, Baltimore and St. Louis -- and the company provides thermal energy to over 1,200 customers in those cities. UTC has numerous development projects underway to provide district chilling to its thermal customers which will be accelerated by Trigen.
 Commenting on the acquisition, Thomas R. Casten, president and chief executive officer, said, "We will seek to achieve our mission in all eleven systems of the combined company, i.e. to provide heating and cooling to multiple urban buildings using 50 percent or less of the fuel and producing 50 percent or less of the pollution than would have resulted from conventional heating and cooling."
 Trigen plans to integrate the New York City headquarters of UTC into its White Plains headquarters and will continue to manage the operation in each city served by UTC with the present management teams. Mr. Casten stated that UTC customers will continue to receive reliable service under a stable rate structure. He said that the significant positive change for UTC customers will be development of central cooling using non-CFC (chlorofluorocarbon) refrigerants and development of cogeneration to increase heating/cooling efficiency.
 CFC refrigerants have been implicated in the destruction of the atmospheric ozone layer which blocks ultraviolet radiation, and their production has been banned after 1995 by the U.S. government. Nearly all large office buildings, hotels, apartment houses, prisons and shopping centers currently use CFC-based refrigeration and their is no replacement refrigerant which works without major modifications to existing machinery.
 Trigen has been replacing these CFC machines with ammonia-based central plants, storage and refrigeration equipment that uses other environmentally benign refrigerants, and currently operates approximately 70,O00 tons of refrigeration in seven cities.
 Trigen's major investor, Ufiner/Cofreth of Paris, provides technical and financial support to Trigen. Ufiner/Cofreth operates over 70 district energy systems, including the steam system serving Paris, and over 20 waste incineration plants that recover energy to heat buildings.
 -0- 12/5/93
 /CONTACT: Michael Weiser of Trigen Energy Corporation, 914-948-9150, or home, 718-858-6261/

CO: Trigen Energy Corporation; United Thermal Corporation ST: New York IN: OIL SU: TNM

TS -- NYSU001 -- 0550 12/05/93 11:39 EST
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Publication:PR Newswire
Date:Dec 5, 1993

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