Private Equity Firm Buys Majority Stake in ENTEK

Global private equity firm I Squared Capital has signed a definitive agreement to acquire a majority interest in ENTEK Technology Holdings LLC, a manufacturer of battery separators and twin-screw extrusion and auxiliary equipment for compounding.

I Squared Capital’s investment in ENTEK was made around the same time that the U.S. Department of Energy (DOE) announced disbursement of $77,217,590 to ENTEK to help finance the company’s lithium-ion battery separator manufacturing facility in Terre Haute, Indiana. It will be ENTEK’s second battery-separator production plant in the U.S.

According to a release issued by theDOE’s Loan Programs Office (LPO), this is the first disbursement of the up to $1.3 billion DOE loanto be issued to ENTEK through the LPO. ENTEK is reportedly the only U.S.-owned and U.S.-based producer of wet-process lithium-ion battery separator materials for data centers, energy storage and consumer electronics.

Approximately 763 construction jobs and 635 operations jobs are expected to be created in Terre Haute once the facility is up and running. The plant, which will be furnished with ENTEK extrusion lines and biaxial orientation lines from Brückner Group USA, will have the capacity to produce 1.4 billion meters² of film/year, the equivalent of about 31 million lbs.

While known to most processors for its line of twin-screw compounding extruders, ENTEK has produced battery separator film at its headquarters in in Lebanon, Oregon, for 40+ years, as well as at facilities in the U.K., Indonesia and Japan.

“For more than 40 years, ENTEK has built a reputation for innovation, quality, and long-term partnerships with the world’s leading energy storage and technology companies,” notes Larry Keith, the company’s CEO. “With I Squared’s capital, strategic expertise and global network, we will expand the U.S.’s manufacturing footprint, create high-quality jobs and meet surging demand for batteries across critical applications, from EVs and energy storage to military defense equipment and data centers.”

Commenting on the investment, Gautam Bhandari, I Squared Capital’s managing partner and chief investment officer, adds: “ENTEK exemplifies the type of critical, high-growth infrastructure platform that I Squared seeks to scale. ENTEK’s revenues are underpinned by long-term agreements with blue-chip clients, and its products are essential to U.S. re-industrialization and energy security. With DOE support and rising demand in EVs, energy storage and defense, ENTEK is uniquely positioned to deliver sustainable growth for our investors and the U.S. economy.”