RGS Energy to Acquire Sunetric, a Leading Solar Company in Hawaii
March 27 2014 - 8:31AM
RGS Energy (Nasdaq:RGSE), a nationwide leader of turnkey solar
energy solutions for residential, commercial, and utility
customers, has signed a definitive agreement to acquire Elemental
Energy, LLC, a full-service solar energy firm operating under the
Sunetric brand.
Based in Oahu, Hawaii, Sunetric is one of state's largest and
most established local solar developers and installers. The
acquisition provides RGS Energy with rapid entry into a major
market that has the highest electricity rates in the U.S. – three
times higher than the national average. These high rates provide
very compelling economics for homeowners and businesses to adopt
solar photovoltaic systems.
Since its formation in 2004, Sunetric has installed more than
3,500 solar projects in Hawaii representing over 65 megawatts of
installations. Sunetric maintains an extensive backlog and pipeline
of commercial and residential projects, with revenue topping $38
million in 2013.
RGS Energy has agreed to pay total consideration of $16 million
to acquire Sunetric, comprised of $7 million in cash and $9 million
in unregistered Class A common stock, along with an additional $3
million in potential earn-out payments. The transaction is expected
to close in the second quarter subject to satisfaction of certain
customary closing conditions.
Sunetric will maintain its current management team and
well-established Sunetric brand as a wholly owned division of RGS
Energy. Sunetric brings more than 90 employees to RGS Energy,
including some of the most experienced residential and commercial
sales and installation teams in Hawaii.
"This transaction brings to RGS Energy one of Hawaii's largest
and most respected solar companies," said Kam Mofid, CEO of RGS
Energy. "Sunetric possesses a healthy balance between commercial
and residential solar projects, plus a strong government portfolio
with experience in all branches of the military. They add to our
already substantial national footprint, while allowing rapid
expansion into new markets with unparalleled solar economics."
"The extremely high cost of utility power in Hawaii has made it
one of the most attractive markets for solar systems in the U.S.,
and this has led to the highest penetration of solar systems in the
country," continued Mofid. "As a result, Hawaii leads the industry
in important areas such as grid integration and is key to the
evolution of solar combined with energy storage. We are eager to
participate in this vibrant market and benefit from significant
opportunities ahead."
Alex Tiller, CEO of Sunetric, commented: "Sunetric's years of
industry experience in originating, designing and installing solar
systems of varying complexity and size for commercial, residential
and utility-scale customers throughout all the islands is highly
complementary to RGS Energy. We're looking forward to applying the
resources that RGS Energy provides in order to increase our project
development capabilities and financing options for our customers.
We are excited to become part of one of the largest and true
pioneers in the solar industry. Our cultures mesh very well, so we
look forward to propelling our combined business to a dominant
position in the industry."
About Sunetric Sunetric is one of the largest
and most experienced solar developers and integrators in Hawaii. As
a full-service solar energy firm, they handle every stage of the
design, development and installation of photovoltaic systems on
Oahu, Maui, Kauai, Molokai, Lanai and the Big Island. For more
information, visit http://sunetric.com/.
About RGS Energy RGS Energy (Nasdaq:RGSE) is
one of the nation's pioneering solar energy companies serving
commercial, residential, and utility customers. Beginning with one
of the very first photovoltaic panels sold to the public in the
U.S. in 1978, the company has installed more than 19,000 solar
power systems representing well over 170 megawatts of 100% clean
renewable energy. RGS Energy makes it very convenient for customers
to save on their energy bills by providing a comprehensive solar
solution, from design, financing, permitting and installation to
ongoing monitoring, maintenance and support. As one of the nation's
largest and most experienced solar power players, the company has
17 offices across the West and the Northeast. For more information,
visit RGSEnergy.com, on Facebook at www.facebook.com/rgsenergy and
on Twitter at https://twitter.com/rgsenergy. RGS Energy is a trade
name and RGS Energy makes filings with the Securities and Exchange
Commission under its official name "Real Goods Solar, Inc."
Cautionary Statement Regarding Forward-Looking
Statements This communication includes forward-looking
statements relating to matters that are not historical facts.
Forward-looking statements may be identified by the use of words
such as "expect," "intend," "believe," "will," "should" or
comparable terminology or by discussions of strategy. While RGS
Energy believes its assumptions and expectations underlying
forward-looking statements are reasonable, there can be no
assurance that actual results will not be materially different.
Risks and uncertainties that could cause materially different
results include, among others, completion and integration of the
transaction described herein and other acquisitions, realizing
synergies and other benefits from the transaction described herein,
the possibility of negative impact from weather conditions,
introduction of new products and services, the possibility of
negative economic conditions and other risks and uncertainties
included in RGS Energy's filings with the Securities and Exchange
Commission. RGS Energy assumes no duty to update any
forward-looking statements.
CONTACT: Media and Investor Relations Contact for RGS Energy:
Ron Both
Liolios Group, Inc.
Tel 1-949-574-3860
RGSE@liolios.com