Shoals Technologies Group and Array Technologies Announce All-Stock Merger Details
Shoals Technologies Group (SHLS) and Array Technologies (ARRY) have detailed an all-stock merger agreement, structuring the deal with an exchange ratio of 1.6931 shares of Array stock for each share of Shoals. Upon completion, Shoals shareholders will hold a 65% stake in the combined entity. The merger aims to leverage significant synergies, targeting $100 million in incremental EBITDA by the third year and $20 million in annual operational cost savings through corporate consolidation. The combined company projects 2027 revenue between $2.2 billion and $2.4 billion, with an estimated Adjusted EBITDA of $410 million to $480 million. Despite Shoals reporting a Q3 revenue increase of 43.8% to $195.3 million, gross margins saw a decline to 31.9% due to manufacturing ramp-up inefficiencies. However, the combined entity enters the market with a massive $3.4 billion backlog and significant tax assets totaling over $1.8 billion in amortization and net operating losses.
Topics: earnings financial projections merger synergies
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Part of the story Array Technologies and Shoals Technologies Group Discuss Merger Details and Q3 Financial Results (5 articles)