Solar Integrated Technology agrees ECD deal
By Thomas Williams in London
ft.com
Published: July 22 2009 16:54 | Last updated: July 22 2009 16:54
Aim-quoted photovoltaic roofing company Solar Integrated Technologies (SIT) has agreed an offer from larger US rival Energy Conversion Devices (ECD) as ECD positions itself for an expected US upturn driven by the country’s stimulus package.
ECD will pay 6.75p cash, or £6.8m in total, for SIT’s shares. But ECD is also taking on a further $5.1m in SIT’s debts bringing the total transaction price to about $16.3m, which ECD is financing from its existing funds.
EDITOR’S CHOICE
Outlook brightens for Japanese solar industry - Jun-30Swiss adventurer unveils solar plane - Jun-26GCL-Poly to buy solar assets for HK$26.4bn - Jun-24Lex: Polysilicon - May-26Australia in race for biggest solar plant - May-18Italy’s solar energy rush risks overheating - May-18Mark Morelli, ECD’s president and chief executive said the deal, which will be put to a SIT shareholder vote on August 19, would strengthen ECD’s position as a provider of integrated photovoltaic roofing systems by “improving our field engineering and technical capabilities in rooftop solar to better support our channel partners in Europe and the US.”
Mr Morelli said the combined group would “also be well positioned to meaningfully participate in the expected growth in the US market, including under the stimulus plan”.
Libertas Partners cleantech analyst Titus Menzies said the deal between the two US companies was symptomatic of the pressures on the photovoltaic market, where a collapse in silicon prices and subsequent price cuts for their end products had forced manufacturers to look for savings as margins are eroded. Mr Menzies added that, while the deal would put ECD closer to its customers, it would also give it SIT’s additional capital expenditure.
SIT designs, makes and installs building integrated photovoltaic (BIPV) roofing systems for commercial roofs. The company made a gross profit of $11m in the year to the end of December 2008, down 24 per cent from $14.4m the previous year despite an 18 per cent increase in revenue to $81.1m.
Copyright The Financial Times Limited 2009 |
