CUI Global to buy solar EPC firm Reach Construction
Solar park in US equipped with Soltec's SF Utility trackers: Author: Soltec
CUI Global Inc (NASDAQ:CUI) has signed a deal to acquire Reach Construction Group LLC, a US-based engineering, procurement and construction (EPC) firm specialising in utility-scale solar power installations.
The buyer, which seeks to create a diversified energy infrastructure services platform, is paying for the purchase with third-party debt and company equity valued at about USD 37 million (EUR 33.6m), excluding working capital and some other adjustments. The transaction is seen to close within 20 days.
With headquarters in Apex, North Carolina, Reach has a contractual backlog for 2020 that surpasses USD 100 million. Its acquisition will allow CUI Global to expand its energy services business into the alternative energy industry and boost its revenue, while also contributing positive net earnings.
On the other hand, Reach will benefit from a diversification of its current capabilities into a broader set of service offerings in the energy infrastructure market, the announcement says.