January 2021 update: It does not appear that the deal went through by the end of 2020 as planned.
The Peck Company has entered into an agreement with solar developer Sunworks to acquire the company through an all-stock transaction. Sunworks’ stockholders would receive an aggregate of approximately 3,079,207 shares of Peck common stock, representing approximately 36.54% of Peck common stock outstanding after the merger.
In a press release, Peck representatives rationalized the merger as an effort to increase the company’s “coast-to-coast” presence as a U.S. solar installer. It’s bringing on Sunworks specialization in the agricultural, commercial and industrial solar markets.
Peck and Sunworks installed a combined 62.973 MW of solar in 2019, which would rank 41st overall and would be the 16th largest EPC contractor based on Solar Power World’s 2020 Top Solar Contractors list.
“This is a transformational combination, leveraging the respective strengths of the two organizations and creating a national leader in the fast-growing and resilient solar energy industry,” said Jeffrey Peck, chairman of the board and CEO of Peck. “It provides Peck expansion, scale, an enhanced financial profile and a stronger platform from which we can continue to build more solar projects. Our integration with Sunworks will extend our presence to the west coast and broaden our offerings to agriculture and public works.”
The Peck Company became a publicly-traded company in 2019, and set three goals: to increase revenue by $12 million, partner with Greenbond Advisors and to expand with an acquisition, Peck said.
“We have been focused on executing these important initiatives for our shareholders and expect the acquisition of Sunworks to provide many more opportunities for long term growth and profitability,” he said.
Chuck Cargile, chairman of the board and CEO of Sunworks, added, “By joining with Peck, our vision for spreading clean solar energy throughout the U.S. is amplified and expanded. Peck has demonstrated the ability to grow revenue and maintain profitability, and we believe that the combination of our teams, customers, projects and partners will materially accelerate revenue growth and earnings…Being part of Peck’s platform is exciting, and in the best interest of Sunworks shareholders, customers, business partners and employees.”
The transaction is expected to close during the fourth Q4 2020, subject to approval by shareholders of both companies and other customary closing conditions. The board of directors of Peck and Sunworks has each unanimously voted in favor of the definitive transaction agreement.
As part of the agreement, after the transaction closes, Jeff Peck will continue as chairman of the board and CEO of the combined company. The board of the combined company will be comprised of four members of the Peck Board of Directors and three members appointed by the Sunworks Board of Directors.
Since the combined company will be in competition with SunPower Corporation in some markets, Doug Rose, who is also a VP at SunPower, has resigned from the Board of Directors of Peck to avoid conflicts of interest.
News item from The Peck Company Holdings