Advanced Energy acquires Refusol

A spokesperson for Metzingen-based Refusol Holding GmbH confirmed that an agreement with Advanced Energy has already been signed. As such, the U.S. company has acquired Refusol’s three-phase string inverter line, which is expected to complement its central inverter products.

According to a statement released by Advanced Energy, around €59 million will be paid in cash for Refusol, after assuming €9 million of debt and reducing net working capital by €1.8 million. If certain, unidentified EBITDA goals are met within the first 12 months after closing, a further €10 million could also be paid out in both cash and Advanced Energy stock.

The U.S. company, which is ranked by IHS Solar as the fourth biggest inverter supplier in 2012, added that its 2014 solar energy revenues are expected to grow to more than US$400 million following the acquisition. "The acquisition of REFUsol is one of the many strategic moves that we are taking to accelerate revenue growth and profitability," stated CEO, Garry Rogerson.

He added, "Using our existing channel in North America and REFUsol’s infrastructure in emerging territories including India, Asia, Mediterranean countries and Eastern Europe, we can more quickly gain access to and penetrate areas with the greatest growth prospects. Combined with our relentless focus on costs, we see this acquisition as instrumental to achieving our strategic goals and returning significant value to our shareholders."

Commenting, Refusol said that the acquisition will allow its products better access to the international photovoltaics market. Marketing director Michael Groll told pv magazine that the contract was signed today, April 9. He added that the Metzingen plant will be preserved.

IHS Solar branded the acquisition a "strategic move to gain presence in core European markets, and further develop its product offerings, as well as mitigating against the risk of small 3-phase inverters eroding its position in commercial installations."

However, while it said the combination of the two companies 2012 businesses makes them the world’s third largest inverter supplier, due to a "relatively fragmented" supplier base, their combined global market share, based on 2012 revenues, is estimated to be just over 5%.