US-based renewables developer Renewable Energy Systems (RES) has confirmed the acquisition of Californian electrical contractor System 3.
RES said the deal would enable the company to accelerate its growth in the country while also complete its transition to a fully integrated contractor given System 3’s experience in constructing substations and transmission lines for the solar market.
The company will now also diversify into offering utility infrastructure and transmission construction services, with RES claiming it will become more competitive in wind, solar and storage development as a direct result.
“With this acquisition, RES will be able to leverage System 3’s expertise in the renewable energy space to grow market share and provide our clients with more solutions under one company. We will be embracing the best capabilities of both organizations,” Glen Davies, chief executive for the Americas at RES, said.
While the transaction fee has not been disclosed, RES has acquired all assets, personnel and equipment of System 3 and its president, Joel Leineke, is to be given the role of president of the resulting entity; RES System 3 LLC.
Leineke is to report to RES chief operations officer Andrew Flower, however there is not expected to be any changes to System 3’s existing operations.
Tom Wilbert, chief executive officer at System 3, said: “We are excited to be joining RES and feel this transaction will provide a stronger balance sheet to allow for the expansion of our transmission business.”
“RES is highly regarded in the renewable energy sector and with the benefit of their more than 30 years of experience, we will be able to focus on reaching the next level of growth that will benefit our employees, customers, and partners,” he added.