Energy engineering firm Babcock & Wilcox is to enter the US solar market through the acquisition of a majority stake in Illinois-based solar contractor Fosler Construction.
As per the terms of the deal, which is expected to close later this month, Fosler will become a part of Babcock & Wilcox’s renewables segment and continue to be led by current CEO Paul Fosler.
Babcock & Wilcox is to take a 60% interest in the firm, with Paul Fosler retaining a minority stake.
Founded in 1998, Fosler provides construction services for C&I and utility-scale solar projects and has a near-term pipeline in excess of 1GW, it said.
Kenneth Young, chairman and CEO at B&W, said the deal aligns with the company’s aggressive growth strategy in the renewables domain.
“Fosler Construction is an established leader in the commercial and utility solar business, and we’re excited about the many opportunities we see to work together to capitalize on a North American solar market that is expected to have a high rate of growth over the next five years,” he said.
“Fosler Construction’s expertise in the growing solar market, combined with B&W’s access to its existing customer relationships and resources to support larger projects, will allow us to aggressively pursue our ongoing renewable energy expansion and diversification.”
Consolidation and M&A in the US solar market has increased over the course of this year as businesses and investors vie for space in what is an increasingly competitive market. Private Equity firm EQT acquired developer Cypress Creek Renewables earlier this summer, while residential installer iSun recently struck a deal to acquire fellow rooftop solar firm SunCommon.