Big acquisition news from last week!
Eco-Shift Power Corp. Completes Acquisition of Sun Industries
CAMBRIDGE, ON, Oct 22, 2014 (Marketwired via COMTEX) -- Eco-Shift Power Corp. (OTCQB: ECOP) today announced the milestone acquisition of California-based Sun & Sun Industries Inc. dba Sun Industries ("Sun"). The definitive Share Purchase and Exchange Agreement (the "Agreement") closed on October 20th, 2014 and has resulted in ECOP acquiring 100% of the issued and outstanding common stock of Sun and the cancellation of all outstanding Sun Preferred Stock.
The acquisition of Sun delivers significant value for ECOP shareholders by combining Sun's growing US market share, impeccable brand & reputation, and world class executive team with ECOP's proprietary LED high bay fixture and wireless light management system that is Demand Response ready. With the acquisition of Sun, ECOP gains an immediate presence in major North American markets including California, Texas, Florida and Puerto Rico. Consolidated company revenue is anticipated to exceed $10M in 2014 with high double-digit growth forecasted for 2015.
Highlights for ECOP Shareholders
-- ECOP gains a substantial annual revenue stream and significant market
share in California as well as other high-growth multi-billion dollar US
markets. Sun has completed over 700 projects in 30 states.
-- ECOP gains a national OEM Distribution Channel for ECOP's proprietary
technologies. By utilizing Sun's trusted reputation and well established
network of national distributors, there will be a quicker market
penetration and scale-up of revenues from ECOP's proprietary
technologies.
-- As a manufacturer, ECOP will be able to earn better margins by plugging
directly into end-users via Sun's core business as well as increasing
the profitability of Sun's successful lighting retrofit business.
-- ECOP will be able to generate ongoing revenue from Sun's core lighting
retrofit business with its Radium Light Management System which will
operate under a Software-as-a-Service (SaaS) model for providing Demand
Management and Demand Response services in addition to wireless lighting
controls.
-- ECOP's access to public market financing is anticipated to add $3-5M to
Sun's pre-acquisition revenue forecast of $13.7M for 2015 by providing
increased bonding capacity needed to access the $2 Billion in
California's Proposition 39 funding.
-- ECOP's leading edge proprietary technology aligns perfectly with
California's Title 24 Regulatory changes that require lighting control
systems that are demand response ready for all new commercial and
industrial facilities.
-- Sun's abilities to manage very large and complex lighting retrofit
projects will expand ECOP's reach within Ontario and to key eastern
states like New York.
-- ECOP gains a world class executive team and project management approach
that continuously delivers excellent results for big name clients.
Project examples for 2014 include Santa Ana College ($1.1 million), JC
Penny ($0.6 million), US Banks -- Arkansas portion of national roll-out
($0.3 million), and The Army & Air Force Exchange Service ($0.3
million). Sun has an impressive client roster of past and repeat
customers including Google, JC Penny, Sears, Best Buy, Starbucks, Coca-
Cola, Hewlett Packard, the Federal Aviation Administration and the Navy
Exchange among many others.
Increase in shareholder value with growth through acquisition
"The acquisition of Sun Industries delivers a major increase in shareholder value to ECOP shareholders," exclaimed CEO Gib Wood. "This acquisition is perfectly aligned with ECOP's repositioning plan to expand into major US markets through strategic acquisitions and partnerships," added Wood. "Our due diligence on Sun Industries exceeded expectations at every turn and I am confident that we are bringing on a world class company and management team that is aligned with our long-term vision," states Wood.
"The entire Sun team is extremely excited about the opportunity that this transaction brings," stated Duncan Frederick, Managing Director of Sun Industries. "With over 20 years of experience in the industry, Sun shareholders and employees see significant upside in ECOP's technology and business model," added Frederick. "Sun management and staff are enthusiastic about the opportunity to expand retrofit sales and operate as a value added reseller in such an exciting high-growth market. Given our intimate knowledge of developments within the lighting industry, we are particularly excited about ECOP's cutting edge Radium Light Management software which we feel is positioned at the forefront of a lighting controls & energy management revolution that is set to take the North American market by storm," concluded Frederick.
About Sun Industries
Headquartered in Santa Ana, California, Sun Industries is a diversified design-build lighting retrofit and energy management company. Sun is a specialist in complex large-scale (+$250k) single site, multiple site and national roll-out lighting retrofit projects servicing the MUSH (municipal, university, schools, hospitals) marketplace and large scale commercial/industrial clients.
Over the past 23 years, Sun has grown to become one of the most respected and successful energy efficiency lighting retrofit companies in the US servicing public sector MUSH (Municipality, University, Schools and Hospitals) and commercial and industrial private sector markets. Sun's clients include Johnson Controls, Siemens Building Technologies, McKinstry, Noresco, Ameresco, Sempra, SCE (Southern California Edison), AAFES (Army and Air Force Exchange Service), JC Penny's, US BankCorp, Colorado Dept. of Transportation and the FAA (Federal Aviation Administration) among many others. With a resume of over seven hundred (700) projects across all public sector and most commercial markets and over $175 Million in cumulative project revenues and over $500 Million in facilities savings, Sun presents the most extensive and diversified design build lighting retrofit project experience in the market place.
Sun was founded in 1991 by Lynda Sun as the Nation's first Woman Minority Owned Business Enterprise (WMBE) specializing in energy efficient lighting retrofits. Ms. Sun's guiding principal was and continues to be about providing products and services that make a difference in this world.
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