Carmanah Technologies Corp (TSX: CMH) has completed the sale of Go Power!, a mobile power solutions provider, to Valterra Products LLC, a U.S. fluid control products supplier to the recreational vehicle, pool and spa, and industrial end markets. Carmanah, a Victoria, British Columbia-based manufacturer of signaling and solar lighting products, said the sale generated US$19.5 million, subject to adjustments and hold-backs. Mission Hills, California-based Valterra is a portfolio company of G. Scott Capital Partners, a U.S. family office. Scott Capital led a recapitalization of Valterra in 2013.
Carmanah Announces Completion of Sale of Off-Grid Power (Go Power!) Business
VICTORIA, BRITISH COLUMBIA–(Marketwired – Aug. 1, 2017) – Carmanah Technologies Corporation (TSX:CMH) (“the Company” or “Carmanah”) today announced that it has completed the sale of its Off-Grid Power business (“Go Power!”) to Valterra Products, LLC (“Valterra”), a portfolio company of G. Scott Capital Partners, LLC. (“Scott Capital”). The proceeds of the asset sale were USD $19.5 million subject to adjustments and holdbacks. Beyond the normal final adjustments and holdbacks that are customary in a transaction of this nature, a potential USD $1.0 million negative adjustment of purchase price is part of the transaction agreement. The price adjustment will come into effect if certain pending tariff matters come into effect during the holdback period.
“The sale of Go Power! is the final step in a series of reorganizational plans that we announced in October of 2016 designed to increase our strategic focus,” said Carmanah CEO, John Simmons. “We are pleased that these plans are now complete and equally pleased that Go Power! will move to the strong ownership of Valterra where it can continue to grow and thrive.”
“Valterra is very excited to add Go Power!’s strong brand name to our expanding line of products. Go Power! has been a leader in the Off-Grid solar market and this acquisition meshes with our goal of being a dominant player in each of our main product categories. We are especially pleased that Division Manager, Mike Stephens and the Go Power Sales / Operations Team have joined Valterra to continue providing their customers with excellent product knowledge and customer service,” said George Grengs, President and CEO of Valterra Products, LLC.
Canaccord Genuity Corp. served as financial advisor and Borden Ladner Gervais LLP acted as legal counsel to Carmanah, respectively.
About Carmanah Technologies Corporation
Carmanah designs, develops and distributes a portfolio of products focused on energy optimized LED solutions for infrastructure. Since 1996, we have earned a global reputation for delivering durable, dependable, efficient and cost-effective solutions for industrial applications that perform in some of the world’s harshest environments. We manage our business within two reportable segments: Signals and Illumination. The Signals segment includes serves the Airfield Ground Lighting, Aviation Obstruction, Offshore Wind, Marine and Traffic markets. The Illumination segment provides solar powered LED outdoor lights for municipal and commercial customers.
About Valterra Products, LLC and G. Scott Capital Partners, LLC.
Valterra has been a leading manufacturer and supplier to the RV, Pool & Spa and Industrial end markets since 1981. Scott Capital is a private investment firm partnering with companies that offer the opportunity for solid, achievable growth and capital appreciation. Scott Capital takes a distinct long-term “buy and build” approach to achieve superior value for all company stakeholders.
Carmanah Technologies Corporation
Chief Financial Officer/Corporate Secretary
Valterra Products, LLC
President & CEO
Photo courtesy of Go Power!