Sunvalley Solar, Inc. , a leading solar power technology and solar system integration company, announced recetly the completion of its acquisition of Rayco Energy Inc. Rayco Energy, an established northern California company, specializes in providing cost-saving and efficient energy solutions, including LED lighting, Solar Thermal and Solar Electricity, to local communities and business units.
Rayco Energy combines energy efficiency measures with renewable energy sources and services the multi-family sector (Apartments, Homeowner Associations (HOA)) and small-sized commercial projects. These two sectors are currently underserved and have high growth patterns predicted over the next 10 years as land becomes more expensive and urban density increases in Northern and Southern California. Rayco is an established market leader in the multi-family sector and positioned for steady growth over the next 5 years. Energy savings projects (solar, lighting, controls) are all market ready and have been adopted by mainstream clients.
Dr. James Zhang, CEO/President of SSOL, notes that, “The acquisition will not only expand our existing solar business footprint from mainly Southern California to Northern California, it will also expand our business coverage from commercial solar systems to the residential and multi-family sectors The acquisition will accelerate Sunvalley’s revenue growth and business expansion. We are very excited about adding additional experienced management and EPCM professionals to our Sunvalley team.” This EPCM group specializes in development, engineering and management of residential and multi-family sector projects, while subcontracting much of the construction. The Rayco energy business is expected to contribute significantly to Sunvalley’s revenues in 2016.
The acquisition will be funded through the issuance of restricted shares of SSOL Series B Preferred stock and $350K in cash. The cash portion is conditional upon the 2016 net operating profit of Rayco Energy, Inc, as a wholly-owned subsidiary of the Buyer.
