Stamford, Connecticut-based Crius Energy – an independent retailer with nearly 950,000 electricity and natural gas commercial and residential customers in the Northeast – announced on September 26 that it would acquire the solar assets of Verengo, a rooftop solar installer with headquarters in Torrance, California.
Verengo, which announced it would file for Chapter 11 bankruptcy protection on September 23 – and which has been rumored to be on the block for at least two years – will sell off 20,000 installed solar systems to Crius. The deal was reported by PV Magazine to be worth $11.9 million, with an immediate infusion of $2.25 million to pay off a portion of Verengo’s debt.
As part of the transaction, Crius Energy Trust has announced the formation of a new special purpose vehicle, Crius Solar Fulfillment (or Newco).
“With a track-record of more than 20,000 solar installations dating back to 2008, the addition of the Verengo platform and team promises to fortify Crius Energy’s position as a challenger in the fast growing U.S. solar market,” said Michael Fallquist, CEO of the Trust.
He clarified, “This transaction augments our recent acquisition of the SunEdison platform [on September 19 through subsidiary Crius Solar], as it provides vertically integrated capability in California . The acquisition is expected to contribute positive [earnings] in fiscal year 2017 as well as valuable strategic relationships with our partners in the transaction.”
In a conference call on September 26, Verengo commented that the acquisition would not affect its current customers, according to PV Magazine, but would allow it to focus on its key mission of expanding its market share on the West Coast and provide a platform for the company to expand its reach nationwide – something the company has struggled to do on its own.