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
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
