Costa Mesa, Calif., May 19, 2010 — SAIL Venture Partners closed a new investment in Paragon Airheater Technologies, a provider of products and services that reduce fuel consumption and carbon emissions in fossil fuel-fired power generation plants.
SAIL co-invested alongside Arborview Capital, a clean energy sector focused private equity firm that with SAIL sees the value proposition Paragon provides their consumers. Paragon’s customers include ExxonMobil, Chevron, DTE Energy, Duke Energy, Georgia Power, Shell, Edison, Mirant, Reliant Energy and Entergy.
“Following a year of record revenues, the SAIL-Arborview transaction will allow Paragon to continue its expansion plans to grow market share both domestically and internationally. With an estimated $42 billion of investment expected in power plant upgrades over the next several years, the measurable efficiency gains and cost savings from Paragon’s solutions should result in substantial growth in demand,” said Cannon Pearson, co-founder and COO of Paragon. “With the financial and strategic support of the investment led by SAIL and Arborview, the company will accelerate the development and delivery of market leading products and services, allowing us to better serve our customers by driving improved thermal performance and reduced carbon emissions for power plant operators.”
Michael Hammons, a Partner at SAIL, stated that “the investment into Paragon is a SAIL milestone — it is our first investment into the energy efficiency market for coal and other fossil fuel based power plants. Paragon exemplifies all of the criteria that we look for in an investment. It is a leader in energy efficiency, has a great return potential for our investors, allows for fund diversification into fossil fuels based power systems, and is attractively valued based on current revenues and positive cash flow.”