From pv magazine Spain
The US company will pay €351 million in cash and €13.9 million in its own ordinary shares. STI Norland shareholders will be eligible for an additional payment of up to €55 million in cash based on the amount of EBITDA generated by STI Norland in 2021. If obtained, the additional payment will be made in 2022 following the completion of an audit of STI Norland's results for 2021.
The transaction is expected to be finalized in the first quarter of 2022. Javier Reclusa, CEO of STI Norland, as well as the rest of the company's management team, will remain with Array Technologies after the transaction closes and will continue to lead the company.
Based in Pamplona, STI Norland has its largest market shares in the Iberian peninsula and Latin America, and was a leader in 2020 in the rapidly growing Brazilian solar market. STI Norland has supplied tracking systems for more than 400 projects around the world, representing more than 12 GW of generation capacity. The company last year generated revenue and EBITDA of approximately €200 million and €43 million, respectively. Aurica Capital, a private equity manager, announced last summer that it had acquired a 41.5% stake in STI Norland through its Aurica III vehicle for around €200 million.
The merging of both manufacturers could create a new world market leader, according to Brad Forth, president of Array Technologies. “This transaction is an important first step in the expansion strategy we developed when we announced our preferred equity investment in Blackstone in August,” he stated. “The combination of Array and STI Norland creates the world leader in trackers, with leading positions in all major solar energy markets outside of China and India.” He also stressed that the STI Norland product line would be complementary to that of Array Technologies. “Increasing the scale of the new company also offers opportunities for significant cost reduction as we drive higher volumes with our suppliers and achieve greater leverage on our fixed costs,” he added.
“The entire STI Norland team is excited about joining Array and the opportunities that the combination of both companies will create,” said STI Norland CEO Javier Reclusa.
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