M&A: Private Equity Firm TPG Acquires Emissions Reduction Specialist Miratech; Data Center Opportunities Await

TPG Rise Climate, a private equity fund, has acquired Miratech -- a key emissions reduction partner to data center providers. The seller was BP Energy Partners. Financial terms of the deal were not disclosed.

This is M&A deal number 261 that Sustainable Tech Partner has covered so far in 2024. Related: See all M&A deals involving sustainability, climate tech and green IT services listed here.

Power Generators for Data Centers: Emissions Reduction Opportunity

Miratech, founded in 1992, is based in Tulsa, Oklahoma. The company provides monitoring and management solutions that reduce industrial engine exhaust and noise associated with stationary power generators.

Miratech, backed by roughly 240 employees, is perhaps best known in the energy infrastructure market. But it's a safe bet the company will double-down on the fast-growing data center market, where emissions reduction is a growing focus.

Miratech has grown both organically and through acquisition. For instance, the company acquired Powertherm Maxim in 2023.

TPG, founded in 1992, is based in Fort Worth, Texas. TPG Rise Climate is the dedicated climate investing strategy of TPG’s $19 billion global impact investing platform. Recent exits include CLEAResult, a provider of energy efficiency, energy transition and sustainability services in North America. 

TPG Acquires Miratech: Executive Perspectives

In a prepared statement about the deal, TPG Partner Marc Mezvinsky said: “MIRATECH’s commitment to reducing emissions by providing cost-effective, technologically advanced solutions will prove critical in the years ahead, particularly as data center power usage continues to grow globally. This investment is a reflection of our thematic focus on negative emissions and derivative equipment & services companies that enable the energy transition. We look forward to leveraging the team’s best-in-class engineering and manufacturing capabilities to continue to grow the company into new products, sectors, and geographies.”

Added Miratech CEO David Zenthoefer: “As energy demand related to AI and cloud migration increases, there is an opportunity to expand MIRATECH’s market leadership amongst data center emergency backup power providers. We are also seeing increasing emissions regulations and air quality standards around the world, including further caps on methane emissions, which our products are well-placed to address. With the capital and expertise from TPG Rise Climate, we look forward to capitalizing on the substantial growth and emissions reductions opportunities ahead.”

Noted Dennis Hamilton, managing director at BP Energy Partners: "As the global economy becomes more data-driven, energy and power demand continue to grow beyond existing grid capabilities, highlighting a need for practical solutions that provide security, redundancy and reliability. MIRATECH's solutions have proven critical in addressing emissions challenges across energy and energy-intensive industries. It has been a pleasure partnering with MIRATECH to support their growth and commitment to addressing these challenges."

Concluded Michael Watzky, BP Energy Partners' co-founder and managing partner: "We are proud of the entire MIRATECH team for building a world-class energy transition business focused on delivering highly engineered emissions solutions with technical and regulatory expertise. We wish them continued success in their new partnership with a premier sponsor."