SolTech acquires the majority in Swede Energy Power Solutions AB

SolTech Energy Sweden AB (publ) has on March 12, 2019, acquired 60% of the shares in the solar energy company Swede Energy Power Solutions AB. After the acquisition of the majority in Nyedal Solenergi and the NP Group, SolTech now acquires the majority in one of Sweden’s most competent and expansive solar energy companies.

SolTech hereby announces its third acquisition this year according to the acquisition strategy presented on October 25, 2018. Swede Energy is based in Jönköping and in Stockholm, founded in 1988, has 14 employees and sales in 2018 approximately SEK 43 million with a positive result.

The acquisition of Swede Energy in economic terms:

  • SolTech acquires 60% of Swede Energy Power Solutions AB (Swede Energy) with an option to acquire the remaining 40% by 2023.
  • All shares in Swede Energy are valued, provided that the stated sales and profit targets are reached, to SEK 45 million. The total acquisition proceeds for 60% of the shares thus amount to SEK 27 million.
  • The acquisition is paid with an initial cash portion of SEK 6.3 million and newly issued shares in SolTech at a value of SEK 8.1 million (corresponding to 30% of the purchase price). After 12 and 24 months, an additional SEK 6.3 million may be paid in additional purchase price if sales and profitability targets are achieved.
  • A variable turnover and profit bonus of a total of SEK 11 million may result if the total turnover exceeds SEK 420 million for the years 2019-2022, while maintaining profitability targets.
  • The acquisition is entirely financed from own cash and with newly issued SolTech shares.
  • SolTech’s assessment is that the acquisition will contribute approximately SEK 70 million in sales for the fiscal year 2019 and with a positive operating profit.
  • SolTech also expects continued strong growth with successively increased operating margins in 2020 and onwards, as a result of increased sales of SolTech’s own products and synergy effects in purchasing, inventory & logistics, marketing, HR and administration.

CEO Stefan Ölander in a comment:

– It is with pride that I note that in a short time we have acquired three high-interest companies. Our goal with this and future acquisitions is to add expertise, driven entrepreneurs and sales channels for our own products and increased growth and profitability within the SolTech Group. We now do this through the acquisition of the majority in Swede Energy, where CEO Christoffer Caesar and his team will be a great asset to us. We are also working on the plan to present further acquisitions in 2019 with the aim of building SolTech as the Nordic region’s most successful solar energy group. However, most important now is to start the collaboration with the NP Group, Nyedal Solar Energy and Swede Energy in order to ensure that this goes according to plan.

 

Christoffer Caesar, CEO Swede Energy in a comment:

– Being part of the SolTech group is something that Swede Energy sees as a brilliant and mutual opportunity. Swede Energy has delivered profitable and safe energy plants to commercial real estate companies and industries for 30 years. To expand our range with SolTech’s innovative integrated solar cell products is a natural next step and an opportunity to grow together on the Nordic market with both traditional and integrated solar cell installations. We know each other well and have great confidence in SolTech since we were commissioned to 2018 build one of Sweden’s largest integrated solar cell installations of about 100kWp with SolTech Shingel.

SolTech’s acquisition scheme is based on the following strategic pillars:

  • SolTech initially acquires at least 51% but not more than 75% of a company. If there is only one owner of the planned acquisition, SolTech requires one or more key persons to become a shareholder before the acquisition is carried out. These two aspects mean that SolTech ensures that the entrepreneurial spirit and drive remain in the acquired company.
  • At least 20% of the purchase price is made up of shares in SolTech. This creates a drive to always do the best for the group as the key persons benefit from a positive price development in the SolTech share.
  • The cash part of the purchase price is paid on three occasions. Upon entry and after 12 and 24 months respectively. In order for the purchase price number two and three to be paid out, both the established turnover and profit requirements are required. This arrangement is positive for SolTech’s liquidity and ensures also that set goals are reached before the entire purchase price is paid.
  • SolTech always has an option to acquire the remaining part of the company after 3-4 years.
  • The last pillar is that our subsidiaries will continue to be driven by the same management and retain their culture and their name. SolTech will support and develop its subsidiaries in a number of areas so that they can grow and become even better, stronger and, not least, more profitable.

For more information, please contact: Stefan Ölander, CEO SolTech Energy Sweden AB (publ) Tel: +46 70 739 80 00. E-mail: stefan.olander@soltechenergy.com or Christoffer Caesar, CEO Swede Energy Power Solutions AB Tel: 0733-35 90 50 or 036-13 06 00. Email: christoffer.caesar@swedeenergy.se

The information in this press release is such that SolTech Energy Sweden AB (publ) must publish in accordance with EU Regulation No. 596/2014 on Market Abuse. The information was submitted through the above contact person’s agency for publication on March 12, 2019 at. 07:00 CET.

About SolTech Energy

SolTech Energy develops and sells aesthetic and building-integrated solar energy products for all types of real estate – commercial, public and residential. The products are part of a building’s outer shell in the form of a roof or a wall with integrated solar cells for the production of electricity. The Group also conducts operations in China where the business model consists of financing, owning and operating solar power plants on customers’ roofs and selling all the electricity that is produced. The Group also includes the subsidiaries Nyedal Solar Energy, the NP Group and Swede Energy, as well as the jointly owned companies ASAB in Sweden and ASRE in China. SolTech Energy Sweden AB (publ) is traded on First North at Nasdaq Stockholm under the short name SOLT and has about 15,000 shareholders. The Company’s Certified Adviser Erik Penser Bank Telephone: +46 8 463 83 00. Email: certifiedadviser@penser.se. More info at: www.soltechenergy.com

About Swede Energy Power Solutions AB

Swede Energy has since 1988 delivered profitable and sustainable energy solutions to commercial real estate companies and industries. With 30 years of experience in energy plants, we are the industry leader in transforming the sun’s energy into electricity – in a safe, profitable and sustainable way. In 2018, Swede Energy built the first stage on one of Sweden’s largest land-based solar parks for the Business Works in Karlskrona consisting of a total of 22,000 panels and 6,000 kWp when the plant is expected to be completed in 2020. In 2018, Swede Energy had a turnover of approx. SEK 43 million and had an order backlog of approx. SEK 40 million which will be delivered in 2019. Swede Energy designs and optimizes all facilities based on the customer’s conditions and focuses exclusively on larger installations. Quality, Environment and Safety are key words and Swede Energy is certified for quality according to ISO 9001, environment according to ISO 14001 and work environment according to AFS2001. More info at: swedeenergy.se

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