Array Technologies’ US headquarters will acquire Spanish tracking competitor STI Norland for approximately €570 million ($652 million) in cash and stock. The transaction is expected to close in the first quarter of 2022. Javier Reclusa, CEO of STI Norland, as well as the rest of the company’s senior management team will remain with Array after the closing of the transaction and continue to lead STI Norland.
“This transaction is an important first step in the expansion strategy we formulated when we announced our preferred investment in shares of Blackstone in August. The combination of Array and STI Norland creates the global leader in trackers with leadership positions in every major solar market outside of China and India. STI Norland brings to Array a proven product line ideally suited to complementary markets that will help accelerate our international expansion plans. The increased scale of the combined business also offers significant cost savings opportunities as we generate greater volumes with our suppliers and achieve greater leverage on our fixed costs,” said Brad Forth, Array chairman.
This combination makes Array the largest solar tracking company in the world. The combined company will occupy leading positions in North America, Latin America and Europe, the three largest solar markets outside of China. STI Norland has an established sales presence in Europe, Latin America, Australia and South Africa. Leveraging STI Norland’s existing sales infrastructure and relationships, Array can accelerate its expansion plans for international markets. The combined company is expected to derive approximately 30% of its revenue from international projects by 2022.
“We look forward to welcoming STI Norland employees to Array. Both STI Norland and Array are rooted in entrepreneurial, founder-operated businesses that are focused on innovation. Together, I believe we have the technology, culture and capabilities to build a truly global company that can create tremendous value for our customers, employees and shareholders,” said Jim Fusaro, Chief Executive Officer of Array.
STI Norland generates approximately 95% of its revenues outside of the US and there is virtually no overlap between the company’s key customers and Array’s key customers. Following the closing of the transaction, Array plans to initiate several cost reduction plans in the combined company, including evaluating additional supplier discounts that may be available from combining purchasing volumes, identifying common components where either company has a price advantage, and implementing the best mutual production. practices at the sites of both companies to reduce costs.
Javier Reclusa, Chief Executive Officer of STI Norland, added: “The entire STI Norland team is excited about joining Array and the opportunities that the combination of the two companies will bring. We have tremendous respect for Array, its technology and management and I look forward to working closely with Brad and Jim to support their ambitious expansion plans.”
News release from Array Technologies