CUI Global closes buy of solar EPC firm Reach

CUI Global Inc (NASDAQ:CUI) on Monday announced the completion of its takeover of solar-focused engineering, procurement and construction (EPC) firm Reach Construction Group LLC.

CUI Global is effectively the owner of Reach Construction as of April 1, having issued 2 million restricted shares of its own common stock and assuming USD 35 million (EUR 38m) in seller's debt in the form of two promissory notes due at between 18 and 36 months. The acquisition agreement also included an earn-out provision, based on specific earnings before interest, tax, depreciation and amortisation (EBITDA) targets.

Apex, North Carolina-based Reach has successfully executed more than 40 projects with a combined capacity exceeding 450 MW. The firm’s contractual backlog for fiscal 2020 surpasses USD 100 million in North American projects.

"The acquisition of Reach will be immediately accretive, providing increased revenues, operating margins, net earnings and significantly enhancing our ability to penetrate the renewable (solar) energy market,” stated CUI Global's CEO, Jim O'Neil.

In addition, the transaction will bring cost synergies such as leveraging existing sales, integration and distribution infrastructure for cross-selling opportunities.

(EUR 1.0 = USD 1.087)

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