CBD Energy Limited has acquired Green Earth Developers (GED) for cash plus restricted shares of CBD common stock. GED installed in excess of 11.5MW in the past year and is negotiating on projects well in excess of this figure.
CBD, which operates as Westinghouse Solar, Inc. in the U.S., acquired GED to accelerate its expansion in the U.S. commercial solar market. GED, based in Charlotte, North Carolina, has collectively built more than 3,500 MW of renewable energy projects and related infrastructure and has long-standing relationships with utilities, developers and EPC contractors throughout the U.S. This acquisition complements CBD's global skill set and delivers a local team with the capability to successfully deliver solar projects in one of the world’s most active solar markets.
“CBD used half the cash contemplated in its initial Securities and Exchange Commission filings,” said CBD Energy Executive Chairman and Managing Director, Gerry McGowan. “We believe the high proportion of stock used to fund the acquisition demonstrates confidence in CBD and gives former GED shareholders, who will continue to manage the company, a material stake in the success of the business and a powerful incentive to contribute to growing CBD’s share value.”
Mr. McGowan continued, “GED is a strong, well-managed business with a robust project pipeline exceeding 50MW. Both the CBD and the GED executive teams believe that by working together we can finalize contracts for a significant portion of these and other opportunities, and further grow our share of the U.S. commercial market in the coming year. The agreement of the GED owners to accept restricted stock rather than cash consideration reflects the confidence we have in the future of this acquisition.”
“GED has grown rapidly since its formation, but has been constrained by lack of capital. As a wholly-owned subsidiary of CBD, we expect the company to benefit from additional opportunities originated through the CBD network and CBD’s access to North American capital markets,” said GED CEO Don Reed.
“The seasoned professionals of GED will bring the experience necessary to scale the commercial segment of our solar business in the U.S.,” said Mr. McGowan. “Over time, we expect GED’s experience will also assist us in establishing and growing a competitive residential solar business in the U.S.”
