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Willdan Signs Agreement to Acquire Lime Energy for USD 120m in Cash.

MANews-(C)2009-2018

8 October 2018 - US-based professional technical and consulting services firm Willdan Group, Inc. (NASDAQ: WLDN) has signed an agreement and plan of merger to acquire all outstanding shares of US-based energy efficiency programme provider Lime Energy Co., the firm said.

The total purchase price of this acquisition is USD 120m in cash, subject to customary holdbacks and adjustments.

Willdan expects the acquisition of Lime Energy to close during 4Q18.

The USD 120m purchase price equates to approximately ten times Willdan's estimate of Lime Energy's anticipated Adjusted EBITDA for 2018, and Willdan anticipates that Lime Energy's 2018 revenue will be approximately USD 145m.

Lime Energy designs and implements direct install energy efficiency programmes for utilities that target energy savings for commercial customers. Lime Energy's programs help these businesses use less energy through the upgrade of existing equipment and installation of new, more energy efficient equipment.

This service allows utilities to delay investments in transmission and distribution upgrades and new power plants, while cost-effectively complying with increasing environmental regulations.

These programmes benefit utilities' customers by lowering their energy bills, improving equipment reliability, reducing maintenance costs, and improving electric grid operations.

Lime Energy has delivered energy efficiency programmes for 10 of the 25 largest electric utilities and five of the 10 largest municipal utilities in the US.

Willdan believes the acquisition of Lime Energy will further expand Willdan's presence in the energy services market and enhance Willdan's offerings.

The acquisition of Lime Energy will provide Willdan the opportunity to diversify Willdan's geographical presence, including in the southeastern and mid-Atlantic regions of the United States where Willdan currently has limited operations.

This transaction will also expand Willdan's utility customer base, as Lime Energy delivers energy efficiency programs to some of the largest electric utilities that are not currently Willdan's clients.

In addition, Willdan believes that the acquisition of Lime Energy will better position Willdan to take advantage of the anticipated upcoming expansions in energy efficiency budgets and contracts in California and the Northeastern United States.

Willdan is a nationwide provider of professional technical and consulting services to utilities, government agencies, and private industry.

The firm service offerings span a set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting.

Country: USA

Sector: Utilities

Target: Lime Energy Co

Buyer: Willdan Group, Inc

Vendor:

Deal size in USD: 120m

Type: Corporate Acquisition

Financing: Cash

Status: Agreed

Buyer advisor: , ,

Comment:

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Publication:M & A Navigator
Date:Oct 8, 2018
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