Array Technologies stock rises after announcing acquisition of APA Solar

Investing.com -- Array Technologies (NASDAQ:ARRY) stock rose 2.8% after the company announced plans to acquire APA Solar, a leading provider of engineered foundation solutions and fixed-tilt mounting systems for solar projects.

The $179 million acquisition will expand Array’s addressable market by nearly 40% and is expected to be accretive to adjusted earnings per share in the first year, even before synergies. The deal values APA at approximately 7.6 times its trailing 12-month EBITDA, excluding 45X credits.

APA generated approximately $129 million in revenue and $25 million in EBITDA excluding 45X credits in 2024. The acquisition will enable Array to offer an integrated tracker and foundation system that addresses challenging soil conditions without requiring specialized equipment to install.

The transaction will also expand Array’s U.S. manufacturing capabilities with APA’s Ohio facility, where products are manufactured domestically and eligible for incentives tied to domestic content.

"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 Technologies.

Oppenheimer analyst Colin Rusch reiterated an Outperform rating and $13.00 price target on Array Technologies, saying, "We believe APA brings capabilities in an expanded geographic footprint, notably colder and rockier regions. We also understand pilings have been a key element of safe harbor spending. In addition to the pilings’ capability, APA brings fixed tilt solutions which makes ARRY a one-stop shop for developers on ground mount infrastructure solutions."

Following the acquisition, APA’s senior management team, including CEO Josh Von Deylen and COO Joe Von Deylen, will remain with the company to lead Array’s new "Foundation Solutions Business." The transaction is expected to close in the third quarter of 2025, subject to regulatory approval and customary closing conditions.

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