BOULDER, Colo., Oct. 15 /PRNewswire-FirstCall/ -- Real Goods Solar, Inc.
(Nasdaq: RSOL), a leading residential solar energy integrator, announced today
that it has expanded its business through a merger with Regrid Power, Inc. of
Campbell, CA. This transaction represents the Company's fourth acquisition in
less than a year. Regrid Power, Northern California's leader in custom
engineered solar electric systems primarily for residential customers,
generated over $15 million of revenue and positive operating income for the
twelve months ended September 30, 2008. Consideration paid, including debt
assumed, was less than one times trailing twelve months revenue, and will
consist of one-third cash and two-thirds stock, as well as an "earn out"
provision. This strategic transaction is consistent with Real Goods' strategy
of driving profitable growth through the acquisitions of established market
leaders with reputations for quality, in addition to its organic growth.
"Our interest in Regrid Power was its excellent reputation, consistently
high gross margin and profitability, and especially the quality of its
leadership," said Jirka Rysavy, Real Goods' Chairman. "We plan for Tom
McCalmont, founder and CEO of Regrid Power, to become CEO of Real Goods Solar
and a member of its Board of Directors during the next two months. John
Schaeffer, Real Goods' founder and current CEO, will become President, and
Erik Zech, current President and CFO, will become CFO."
"By combining our operational efficiencies and design excellence with Real
Goods Solar, a solar pioneer and an industry leader, we will have an enhanced
ability to scale and deliver our outstanding service to a much larger
population of customers," said Tom McCalmont, CEO of Regrid Power. "Real
Goods is the original solar company and has a philosophy that is very
compatible with Regrid's."
"This transaction establishes Real Goods as the undisputed market leader
in residential solar installations, and we are very excited to integrate
Regrid's design excellence and unique power output guarantee," said John
Schaeffer, CEO of Real Goods Solar. "We are pleased to further strengthen our
position in Northern California and we believe Regrid Power is a good example
of how we continue to leverage our existing infrastructure with strategic
acquisitions that offer an established customer base, compatible geography and
realizable synergies."
Regrid Power, Inc. custom designs and builds solar power systems that
produce the optimal amount of power for each customer. Regrid Power backs
their work with a performance guarantee unique in the industry, the
PowerPledge. Since its founding in 2002 by Tom and Darlene McCalmont, Regrid
Power has installed over 1,000 PV systems representing approximately 5MW of
generating capacity, and the company demonstrates design excellence through
its six NABCEP certified PV designers on staff. For more information, visit
http://www.regrid.com.
Real Goods Solar, Inc. is a leading residential solar energy integrator.
Real Goods Solar offers turnkey solar energy services, and has 30 years of
experience in residential solar energy, beginning with the sale in 1978 of the
first solar photovoltaic, or PV, panels in the United States. Real Goods Solar
has installed nearly 3,000 solar systems to date. For more information about
Real Goods Solar, please visit http://www.realgoodssolar.com.
This press release includes forward-looking statements relating to matters
that are not historical facts. Forward-looking statements may be identified by
the use of words such as "expect," "intend," "believe," "will," "should" or
comparable terminology or by discussions of strategy. While Real Goods
believes its assumptions and expectations underlying forward-looking
statements are reasonable, there can be no assurance that actual results will
not be materially different. Risks and uncertainties that could cause
materially different results include, among others, introduction of new
products and services, completion and integration of acquisitions, the
possibility of negative economic conditions, and other risks and uncertainties
included in Real Goods' filings with the Securities and Exchange Commission.
Real Goods assumes no duty to update any forward-looking statements.
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