Thin-film company Advanced Energy Industries has announced the acquisition of inverter manufacturer REFUsol Holding GmbH, effective immediately.
Under the agreement, Advanced Energy has acquired REFUsol for a purchase price of approximately €59 million (US$77 million) in cash, after assuming €9 million (US$12 million) of debt and reducing net working capital by €1.8 million (US$2.4 million).
Additionally, REFUsol may receive an additional €10 million from Advanced Energy if certain targets are met by REFUsol in the first 12 months.
This acquisition is expected to accelerate Advanced Energy's solar energy revenue to greater than US$400 million in 2014 and should be accretive to earnings in the next 12 months, said the company.
In December, REFUsol received business consulting firm Frost & Sullivan’s Growth Leadership Award for having the highest annual growth rates within the last three years.
In the past three years, REFUsol grew by around 150% and was able to greatly expand its market share. With a consistent market orientation, the company was able to achieve broad acceptance of its products throughout Europe and is today one of the top three inverter manufacturers on the Continent.
"The acquisition of REFUsol is one of the many strategic moves that we are taking to accelerate revenue growth and profitability," said Garry Rogerson, CEO. "The addition of the three-phase string inverters to our product line is very complementary, broadening our portfolio and extending our geographic distribution. 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,” said Rogerson.
Founded in Germany in 1997, REFUsol develops three-phase string inverters for commercial customers across Europe and Asia in sizes ranging rom 8kW to 24kW.