AmericasFeaturedRenewables

Peck acquires Sunworks

0

The Peck Company (Peck) and Sunworks have entered into a definitive agreement under which Peck will acquire Sunworks in an all-stock transaction.

Under the transaction each share of Sunworks common stock will be exchanged for 0.185171 shares of Peck common stock.

Assuming no adjustments, Sunworks’ stockholders would receive an aggregate of approximately 3,079,207 shares of Peck common stock, representing approximately 36.54% of Peck common stock outstanding after the merger.

“This is a transformational combination, leveraging the respective strengths of the two organizations and creating a national leader in the fast-growing and resilient solar energy industry. It provides Peck expansion, scale, an enhanced financial profile and a stronger platform from which we can continue to build more solar projects. Our integration with Sunworks will extend our presence to the west coast and broaden our offerings to agriculture and public works. The transaction solidifies our three-pronged growth strategy that we announced a year ago when we listed on Nasdaq through a SPAC merger. Since we have been public, we delivered organic growth of revenue from $16 million to $28 million in the first year, partnered with GreenBond Advisors to access capital that provides EPC revenue as well as asset ownership in the solar projects we build for the partnership, and now we are delivering on the third prong of our strategy with an exciting accretive acquisition. We have been focused on executing these important initiatives for our shareholders and expect the acquisition of Sunworks to provide many more opportunities for long term growth and profitability.”

Jeffrey Peck, chairman of the board and chief executive officer of Peck.

“By joining with Peck, our vision for spreading clean solar energy throughout the U.S. is amplified and expanded. Peck has demonstrated the ability to grow revenue and maintain profitability, and we believe that the combination of our teams, customers, projects and partners will materially accelerate revenue growth and earnings. Peck’s strong partnership with GreenBond Advisors will allow us to offer financing to a broader range of customers and increase our addressable market. Additionally, our expanded scale will enable us to source solar panels and equipment through Peck’s established relationships at lower costs, benefiting our profit margins. Being part of Peck’s platform is exciting, and in the best interest of Sunworks shareholders, customers, business partners and employees.”

Chuck Cargile, chairman of the board and chief executive officer of Sunworks.

The transaction is expected to close during the fourth quarter of 2020, subject to approval by shareholders of both companies and other customary closing conditions.

As part of the agreement, after the transaction closes, Jeff Peck will continue as chairman of the board and CEO of the combined company. The board of directors of the combined company will be comprised of four members of the Peck board of directors and three members appointed by the Sunworks board of directors.

Because the combined company will be in competition with SunPower Corporation in some markets, Doug Rose, who is also a vice president at SunPower Corporation, has resigned from the board of directors of Peck to avoid conflicts of interests.

Anela Dokso

Eco Wave Power’s founder and CEO featured on Most Creative People in Business list

Previous article

EDPR signs €426M rotation deal for onshore wind assets in Spain

Next article

You may also like

More in Americas

Comments

Comments are closed.