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ALBUQUERQUE - Array Technologies (NASDAQ:ARRY), a provider of solar tracking technology with a market capitalization of $1.1 billion and showing strong momentum with a 38% price return over the past six months, announced today it has entered into a definitive agreement to acquire APA Solar, LLC for approximately $179 million, representing 7.6 times APA’s trailing 12-month EBITDA excluding 45X credits. According to InvestingPro analysis, Array currently trades below its Fair Value, suggesting potential upside opportunity.
The acquisition will add domestically manufactured engineered foundations and fixed-tilt mounting systems to Array’s product portfolio, expanding its addressable market by nearly 40%. APA’s products are manufactured in Ohio and qualify for domestic content incentives. This strategic move comes as Array maintains a healthy financial position, with InvestingPro data showing a current ratio of 2.39, indicating strong liquidity to support expansion efforts.
According to the agreement, Array will pay $168 million in upfront cash consideration and $42 million in deferred consideration, less $31 million in tax benefits. The deferred amount will be paid in two equal installments on the first and second anniversary of closing, contingent on continued employment of key executives.
APA generated approximately $129 million in revenue and $25 million in EBITDA excluding 45X credits in 2024. The acquisition is expected to be accretive to Array’s Adjusted EPS by a high-single-digit percentage in the first year before synergies.
"Demand for engineered foundations is growing rapidly because of their ability to make projects in areas with more challenging soil conditions economically viable," said Kevin G. Hostetler, Chief Executive Officer of Array.
Following the closing, Array will offer an integrated tracker and foundation system that addresses challenging soil conditions without requiring specialized installation equipment. The company will also continue to offer APA’s foundation solutions for other tracker systems and fixed-tilt racking products.
APA’s senior management team, including CEO Josh Von Deylen and COO Joe Von Deylen, will remain with the company post-acquisition to lead Array’s new Foundation Solutions Business. APA’s headquarters and manufacturing operations will continue to be located in Ridgeville Corners, Ohio.
The transaction is expected to close in the third quarter of 2025, subject to regulatory approvals and customary closing conditions.
This article is based on a press release statement from Array Technologies.
In other recent news, Array Technologies held its Annual Meeting of Stockholders, where several important decisions were made. Two board members, Jayanthi Iyengar and Tracy Jokinen, were elected, with Jokinen receiving a stronger endorsement. Stockholders also ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. However, a proposal on the compensation of the company’s Named Executive Officers did not pass.
In analyst updates, Jefferies raised Array Technologies’ price target from $7.00 to $10.00, maintaining a Buy rating, highlighting the company’s potential to benefit from a broader recovery in the solar industry. Similarly, Goldman Sachs increased its price target to $11.00 from $9.00, also maintaining a Buy rating, citing potential upside from policy changes. Meanwhile, BMO Capital Markets maintained a Market Perform rating with a price target of $7.00, noting the company’s challenges with guidance and potential project delays due to tariff policy uncertainty.
These developments reflect a mix of strategic governance decisions and varying analyst perspectives on the company’s future prospects.
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