Ven-Cap Agrees to Buy Energy-Related Firm

Ven-Cap Inc. said it agreed to acquire Energy Savings Systems Inc. of Portland, Ore., for an undisclosed amount of stock and cash.

Newport Beach-based Ven-Cap, a holding company that specializes in acquiring energy-related businesses, said it expects to complete the acquisition by June 30, subject to completion of a definitive agreement.

Ven-Cap, which is traded over the counter, has about 5.1 million common shares outstanding. Some additional shares may be issued to complete the purchase, said Roy Nelson, Ven-Cap’s chairman and chief executive. Acquisition of Energy Savings will help Ven-Cap achieve its goal of $6 million in net income for the fiscal year, Nelson said. Revenue for the year is expected to be about $42 million, he said.

Ven-Cap said it expects to report results for its first fiscal year, which ended March 31, by the end of June. The company was formed in March, 1985, and has acquired two other energy management concerns, Northridge-based American Energy Savings Inc. and Santa Ana-based Energy Systems Co. of America Inc. Ven-Cap’s total employment is about 100 and will grow to about 125 when it completes the acquisition of Energy Savings Systems.

In addition to making control systems for boilers, Energy Savings designs and develops digital controllers for refrigeration.