Carmanah Technologies to Acquire Soltek Powersource:$10M in Cash and Stock

May 25, 2005
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VANCOUVER (CP) _ Carmanah Technologies Corp. said Wednesday it is acquiring Soltek Powersource Ltd. in a $10-million deal.

Privately held Soltek is described as the largest Canadian supplier of solar systems and solar-power-related equipment, with revenue in its year ended last August of $17.5 million and earnings before interest, taxes, depreciation and amortization of $1.2 million.

Soltek, headquartered in Victoria, has 65 employees.

Vancouver-based Carmanah (TSXV:CMH) said it will pay $6million in cash from existing funds and $4 million worth of shares.

There will be an additional payment of up to $2 million in shares if Soltek produces six-month revenue of $9 million to $12 million and EBITDA worth 5.5 per cent of revenue in the July-December period.

“With this acquisition, Carmanah will become the largest solar company in Canada,” stated CEO Art Aylesworth.

“The synergies we see from this purchase are extensive. We anticipate a new range of co-developed solar/LED general illumination products, including security lighting, street lighting and sign lighting, for applications in all of the markets we currently serve. We also foresee an entirely new product line of standardized `plug-and-play’ solar power sources.”