Quebec, Canada [RenewableenrgyWorld.com] ICP Solar Technologies Inc., a developer, manufacturer and marketer of solar panels and products, announced that it has entered into a binding Letter of Intent (LOI) to acquire Ibersolar Energía, S.A., a European manufacturer and supplier of solar photovoltaic (PV) systems, solar thermal systems and absorption units.
Ibersolar has annualized sales of approximately €120 million [US $153.17] and has been profitable since 2005. The company’s PV modules provide electrical energy for residential, commercial and industrial applications worldwide.
Under the terms of the LOI, ICP will acquire 100% of the shares of Ibersolar. The two companies have agreed to enter into a definitive share purchase agreement and sign any other documents necessary for the acquisition within six weeks of the signing of the LOI, or as soon as practicable thereafter.
The closing of the acquisition is contingent upon financing by ICP of a minimum of US $15 million on terms acceptable to both parties. A financing plan must be arranged before December 15, 2008; additional terms are outlined in a Form 8K filed with the SEC. The new company structure after the acquisition, but before the financing, will be owned 20% by existing ICP shareholders and 80% by existing Ibersolar shareholders on a fully diluted basis.
“By acquiring Ibersolar, ICP will see a twenty-fold increase in the size of its business and automatically become a recognized player in the burgeoning European market,” said Sass Peress, chairman and CEO of ICP Solar. “Ibersolar brings with it excellent solar applications, established R&D, strong supplier relationships, and a substantial customer base that spans commercial, industrial, and government entities across the continent.”