CBD Energy finalises GED takeover.
M2 EQUITYBITES-July 8, 2014-CBD Energy finalises GED takeover
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8 July 2014 - Australian renewable energy company CBD Energy Ltd (NASDAQ:CBDE) said it had closed its cash-and-stock acquisition of US solar energy services provider Green Earth Developers LLC (GED).
CBD said more than half of the deal consideration was satisfied in resticted stock but it did not reveal the financial value of the transaction.
Charlotte, North Carolina-based GED provides EPC construction, project feasibility and technical design services, among others, and delivers projects in Massachusetts, New Mexico, Colorado and California. The company will operate as a wholly-owned subsidiary of CBD and its founder and CEO, Donald Reed, will keep his executive position and become head of CBD's commercial and utility business in the US, the buyer said in April when the deal was announced.
CBD, which operates as Westinghouse Solar Inc in the US, bought GED to step up its growth in the US commercial solar segment. Furthermore, CBD's network and access to North American capital markets will result in additional opportunities for GED, Reed explained.
The acquisition is also seen to boost CBD's earnings in the second half of 2014, managing director Gerry McGowan said.
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