Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) today announced that it has completed the sale of its Off-Grid Power business (“Go Power!”) to Valterra Products, LLC (“Valterra”), a portfolio company of G. Scott Capital Partners, LLC. (“Scott Capital”). The proceeds of the asset sale were USD $19.5 million subject to adjustments and holdbacks. Beyond the normal final adjustments and holdbacks that are customary in a transaction of this nature, a potential USD $1.0 million negative adjustment of purchase price is part of the transaction agreement. The price adjustment will come into effect if certain pending tariff matters come into effect during the holdback period.
“The sale of Go Power! is the final step in a series of reorganizational plans that we announced in October of 2016 designed to increase our strategic focus,” said Carmanah CEO, John Simmons. “We are pleased that these plans are now complete and equally pleased that Go Power! will move to the strong ownership of Valterra where it can continue to grow and thrive.”
“Valterra is very excited to add Go Power!’s strong brand name to our expanding line of products. Go Power! has been a leader in the Off-Grid solar market and this acquisition meshes with our goal of being a dominant player in each of our main product categories. We are especially pleased that Division Manager, Mike Stephens, and the Go Power Sales / Operations Team have joined Valterra to continue providing their customers with excellent product knowledge and customer service,” said George Grengs, President and CEO of Valterra Products, LLC.
Canaccord Genuity Corp. served as financial advisor and Borden Ladner Gervais LLP acted as legal counsel to Carmanah, respectively.
Please click here to be redirected to the Go Power! website.
About Carmanah Technologies Corporation
Carmanah designs, develops and distributes a portfolio of products focused on energy optimized LED solutions for infrastructure. Since 1996, we have earned a global reputation for delivering durable, dependable, efficient and cost-effective solutions for industrial applications that perform in some of the world’s harshest environments. We manage our business within two reportable segments: Signals and Illumination. The Signals segment includes serves the Airfield Ground Lighting, Aviation Obstruction, Offshore Wind, Marine and Traffic markets. The Illumination segment provides solar powered LED outdoor lights for municipal and commercial customers.
About Valterra Products, LLC and G. Scott Capital Partners, LLC.
Valterra has been a leading manufacturer and supplier to the RV, Pool & Spa and Industrial end markets since 1981. Scott Capital is a private investment firm partnering with companies that offer the opportunity for solid, achievable growth and capital appreciation. Scott Capital takes a distinct long-term “buy and build” approach to achieve superior value for all company stakeholders.
Carmanah Technologies Corporation:
Evan Brown, (250) 380-0052
Chief Financial Officer/Corporate Secretary
Valterra Products, LLC:
George Grengs, (818) 898-1673
President & CEO
This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “expects,” “plans,” “estimates,” “intends,” “believes,” “could,” “might,” “will” or variations of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah or Sabik to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to: our ability to become a worldwide leader in the marine aids to navigation industry, the potential growth of the off shore wind safety market or our ability to participate in any growth and other general uncertainties that may impact actual outcomes. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. Carmanah disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
For additional information on these risks and uncertainties, see Carmanah’s most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company’s website at www.carmanah.com. The risk factors identified in Carmanah’s AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah.