Solar3D, a provider of solar power solutions
and the developer of a proprietary high efficiency solar cell, announced that
it has inked a definitive agreement to acquire 100% of Elite Solar, a Durham,
California-based solar systems provider. The purchase is a continuation of
Solar3D’s aggressive growth-by-acquisition strategy, which is intended to boost
the company’s top line revenue as well as operating earnings.
Elite Solar designs and installs photovoltaic
systems for residential, commercial, agricultural and municipal customers. The
company is led by CEO Kirk Short, a solar power industry veteran with more than
15 years of experience in every facet of solar design and construction, on
projects ranging from residential to large scale commercial and agricultural
solar solutions.
Elite Solar is operating profitably and has
experienced a breakthrough year. Revenue for 2015 is expected to approach $20
million, an increase of approximately 140% over the 2014 figure. Elite Solar
also expects EBITDA (earnings before interest, taxes, depreciation, and
amortization) to be approximately $2.2 million in 2015. Solar3D will pay $7.15
million for the company, with $2.5 million to be paid in cash and $4.65 million
in common stock. The purchase agreement calls for additional consideration
should certain sales and EBITDA milestones are met. The total purchase price,
including earnouts, is intended to slightly over four times the trailing
12-month EBITDA for 2015. Following the acquisition, Elite Solar will continue
to operate as a wholly owned subsidiary of Solar3D-and work closely with
Solar3D’s SUNworks division.
“We are thrilled to enter into this agreement
with Elite Solar, a company known for its commitment to excellence and its
strong leadership, which has led to the company’s tremendous sales growth,”
said Jim Nelson, CEO of Solar3D. “This purchase is consistent with our plan to
acquire profitable companies that give us a competitive advantage in the
high-growth solar landscape. By combining Elite Solar’s experience and reach
with Solar3D’s proven execution, we are significantly expanding the scale of
our solar energy platform to become a leader in California’s commercial solar
industry, especially within the fast growing agricultural sector. Our entire
leadership team at Solar3D looks forward to working with CEO Kirk Short and his
team, to enhance our company’s growth and increase the value for our
shareholders.”
“The opportunity to join efforts with Solar3D
and its subsidiaries provides the Elite Solar team with the opportunity and
resources to drive our business even more aggressively,” said Kirk Short, CEO
of Elite Solar. “We believe our expertise perfectly complements their existing
leadership and solar services, and we think we will be a tremendous asset to
their growth moving forward.”
The closing of the Elite Solar acquisition,
as described in the definitive purchase agreement, is subject to Solar3D’s
satisfactory review of the operations, financial (including an audit) and
corporate records of Elite Solar. The transaction is expected to close on or
before November 1, 2015.
For more information on Solar3D, visit
http://www.Solar3D.com
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