Broadwind Energy Acquires Red Wolf Company, LLC
February 01 2017 - 6:00AM
Broadwind Energy, Inc. (NASDAQ:BWEN) today announced that it has
completed the acquisition of Red Wolf Company, LLC, a
privately-held fabricator, kitter and assembler of industrial
systems primarily supporting the global gas turbine market.
With this acquisition, Broadwind expands its market reach, gains
new capabilities and customer relationships, and diversifies its
product portfolio and geography.
Broadwind President and CEO Stephanie Kushner stated, “The
acquisition of Red Wolf aligns with a new growth strategy approved
by our Board late last year. Our intention is to double our revenue
over the next 3 years through organic growth, such as the expansion
currently underway in our Abilene tower plant, plus strategic
bolt-on acquisitions like Red Wolf, to expand and diversify our
business. Additionally, we will continue to focus on driving
increased profitability through improving our commercial and
operational execution. The Red Wolf acquisition is expected to be
immediately accretive to Broadwind’s earnings. The additional
income will be shielded for income tax purposes by utilizing
Broadwind’s significant net operating loss carryforwards.”
Broadwind plans to maintain Red Wolf’s operations in Sanford,
NC, under the continued leadership of Kim Sutton, President of Red
Wolf. For external reporting purposes, Red Wolf’s financials will
be combined with Broadwind’s nascent entry into the CNG compression
systems business, which is currently operated out of Abilene, TX.
The new business segment, Broadwind Process Systems, will design
and manufacture custom, modular systems for specialized process
applications for the global market. The Process Systems segment is
expected to generate approximately $30-32 million of revenue and
$4-5 million of non-GAAP adjusted EBITDA in 2017. The operating
income impact of the Red Wolf acquisition will be determined after
the third-party purchase allocation valuation has been
finalized.
Additional information regarding the transaction is provided in
Broadwind’s Current Report on Form 8-K filed today.
About Broadwind Energy, Inc.Broadwind Energy
(NASDAQ:BWEN) applies decades of deep industrial expertise to
innovate integrated solutions for customers in the energy and
infrastructure markets. From gears and gearing systems for wind,
oil and gas and mining applications, to wind towers and industrial
weldments, we have solutions for the energy needs of the future.
With facilities throughout the central U.S., Broadwind Energy's
talented team is committed to helping customers maximize
performance of their investments—quicker, easier and smarter. Find
out more at www.bwen.com
Forward-Looking StatementsThis release contains
“forward‑looking statements”, as defined in Section 21E of the
Securities Exchange Act of 1934, as amended. Forward‑looking
statements include any statement that does not directly relate to a
current or historical fact. Our forward-looking statements may
include or relate to our beliefs, expectations, plans and/or
assumptions with respect to the following: (i) our ability to
successfully integrate and operate Red Wolf and identify, negotiate
and execute future acquisitions; (ii) state, local and federal
regulatory frameworks affecting the industries in which we compete,
including the wind energy industry, and the related extension,
continuation or renewal of federal tax incentives and grants and
state renewable portfolio standards; (iii) our customer
relationships and efforts to diversify our customer base and sector
focus and leverage customer relationships across business units;
(iv) our ability to continue to grow our business organically; (v)
the sufficiency of our liquidity and alternate sources of funding,
if necessary; (vi) our restructuring efforts, including estimated
costs and saving opportunities; (vii) our ability to realize
revenue from customer orders and backlog; (viii) our ability to
operate our business efficiently, manage capital expenditures and
costs effectively, and generate cash flow; (ix) the economy and the
potential impact it may have on our business, including our
customers; (x) the state of the wind energy market and other energy
and industrial markets generally and the impact of competition and
economic volatility in those markets; (xi) the effects of market
disruptions and regular market volatility, including fluctuations
in the price of oil, gas and other commodities; and (xii) the
potential loss of tax benefits if we experience an “ownership
change” under Section 382 of the Internal Revenue Code of 1986, as
amended. These statements are based on information currently
available to us and are subject to various risks, uncertainties and
other factors. We are under no duty to update any of these
statements. You should not consider any list of such factors to be
an exhaustive statement of all of the risks, uncertainties or other
factors that could cause our current beliefs, expectations, plans
and/or assumptions to change.
BWEN INVESTOR CONTACT: Joni Konstantelos, 708.780.4819 joni.konstantelos@bwen.com
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