Solar Alliance seeks expansion in Canada via acquisition

Canada-based and US-focused solar installer Solar Alliance Energy Inc (TSX-V:SOLR) is seeking to expand at home through the acquisition of a western Canadian commercial and utility solar company that has a portfolio of more than 33 MW of already installed projects.

Solar Alliance, which is mostly active in the southeastern US, has inked an arm’s length Letter of Intent (LoI) to acquire an unnamed “growing, profitable Canadian solar company” for about CAD 6 million (USD 4.45m/EUR 4.11m), a press release said on Thursday.

The target business, active since 2013, is based in Alberta and is expected to report CAD 5.8 million in unaudited revenue for the fiscal year that ends on July 31, 2023. It has a backlog of contracted projects totalling more than USD 5.6 million.

“The transaction is expected to significantly increase the scale of Solar Alliance, be immediately accretive to Solar Alliance, provide access to the rapidly expanding Canadian solar market and create operational synergies while positioning the Company to be cash flow positive post-transaction,” CEO Myke Clark said in the press release.

The LoI gives Solar Alliance a 90-day exclusivity period to conclude due diligence, structure a deal and sign a binding agreement. Solar Alliance noted that it will disclose the name of the target company when a deal is formally clinched.

The potential transaction will be predominantly share-based with the target company’s current shareholders receiving about 25% of the issued common stock in Solar Alliance post-close.

Solar Alliance builds, owns and operates its own solar assets and also sells and installs solar projects to commercial and utility customers. The company is mainly focused on Tennessee, Kentucky and the surrounding area.

(CAD 1 = USD 0.742/EUR 0.686)

Choose your newsletter by Renewables Now. Join for free!