BusinessThursday, November 5
Array Technologies will merge with Shoals in a deal valued at over $1 billion
The Morning Albuquerque team
If you follow Albuquerque's solar industry, this one's big. Array Technologies, one of New Mexico's few publicly traded companies, announced a merger Wednesday with Tennessee-based Shoals Technologies Group in a deal valued at over $1 billion. An Array spokesperson wrote in an email that the combined company's headquarters and principal place of business will remain in New Mexico.
Shoals shareholders will own roughly 65% of the combined company
65%Shoals shareholders' share of ownership
Sources: Albuquerque Journal, markets.businessinsider.com
View as table
| Value | |
|---|---|
| Shoals shareholders' share of ownership | 65% |
The combined company will legally be known as Array. Array makes trackers and Shoals makes electrical wiring. Asked about jobs, the spokesperson said the stock-for-stock merger "does not change either company's existing manufacturing operations or commitments to local communities."
- Array stock: up nearly 15%, $5.33 a share at close
- Shoals stock: up 8%, roughly $9.16 a share Wednesday evening
- Brad Forth, on both boards, will chair the new board
- New name and ticker symbol: to be announced
Few solar projects use both companies' products today
- $20 million
- in expected cost savings from overhead and other expenses
- 20%
- of solar projects use products from both companies today
- $50 million
- for the West Side factory expansion Hostetler oversaw
Source: Albuquerque Journal
Array projects the combined company will earn between $2.2 and $2.4 billion in revenue in 2027. Brandon Moss, Shoals' CEO, will lead it. Array CEO Kevin Hostetler becomes a special adviser.