Array Technologies completes $203 million Affordable Wire Management acquisition
The solar-tracker maker paid about $165 million upfront and forecasts high-single-digit first-year adjusted EPS accretion before synergies.
Array Technologies has completed its acquisition of Affordable Wire Management, adding wire-management, cable-protection and balance-of-system products serving utility-scale solar, distributed generation, energy-storage and data-centre projects.
The company paid approximately $165 million in cash at closing. Total consideration could reach $203 million, comprising a $153 million base purchase price, up to $10 million in employment-conditioned deferred instalments and a performance-based earnout of up to $40 million.
Array forecasts at least high-single-digit accretion to its company-defined non-GAAP adjusted earnings per share in the first year, before synergies. The measure excludes items including intangible amortisation, acquisition expenses, equity compensation and changes in the fair value of contingent consideration.
Affordable Wire Management generated nearly $60 million in trailing-12-month revenue. The maximum consideration equates to about 8.8 times trailing-12-month EBITDA, according to the transaction details reported by Yahoo Finance.
Array has identified potential cross-selling through its tracker customer base, including the prospect of combining trackers, foundations and wire management. However, it has not quantified the share of its order book eligible for cross-selling, AWM’s expected revenue contribution or the detailed bridge to the projected earnings benefit.
Array’s order book stood at $2.5 billion as of 30 June, up 37% from a year earlier. The company’s previous APA Solar integration provides a precedent for combining tracker and foundation sales, but does not establish the outcome for AWM. Customer qualification, coordinated bidding and project execution will determine whether the acquisition delivers additional growth.
