CBD Energy
CBD Energy (ASX: CBD) is a diversified renewable energy and energy storage company providing integrated sustainable solutions for fossil fuel and CO2 emission reduction. CBD has offices in Melbourne and Sydney. CBD aims to develop a portfolio of operating assets in which we hold minority interest and earn ongoing cash flows. Projects developed should benefit the communities in which CBD operates.
CBD Energy takes foothold on renewable energy sector with latest acquisition
CBD Energy (ASX: CBD) has taken another significant step forward in the company's transformation into an integrated renewable energy business, following the acquisition of eco-Kinetics for $13 million.
The $13 million acquisition comprises a cash payment of $5 million on completion, with the remainder in cash and shares subject to an earn out over the next two and half years.
The acquired company, eco-Kinetics, provides engineering design, supply and installation services to make effective use of wind and solar power for retail and commercial customers.
CBD has signed a Heads of Agreement for the acquisition, subject to financing, due diligence and documentation.
CBD managing director Gerry McGowan said the acquisition marked the end of a restructuring phase for CBD and positions the business with revenue and earnings to support its growing list of renewable energy projects in Australia, China and New Zealand.
"This is a company transforming deal for CBD - it puts all the pieces in place for a profitable and growing platform as a diversified renewable energy business," Mr McGowan said.
Eco-Kinetcis is profitable, forecasting to earn $40 million in revenue for the year to 30 June 2010, and adds engineering and project management capabilities that can be applied across each of CBD's business activities.
Managing director Edwin Cywinski said the eco-kinetic's decision to join CBD was an easy one.
"Gaining access to CBD's excellent resources will help us achieve our goals, plus provide excellent career opportunities for all of our staff," Mr Cywinski said.
The acquisition follows last week's investment by CBD in the fast growing Planet Power renewable energy business which expects to have 50 retail stores around Australia by June 2011. CBD has taken a 20 per cent stake in Planet Power and has the option of increasing this to 51% by 2012.
Planet Power has become a significant buyer of CBD's solar energy panels with a total of $5 million in orders in place.
Mr McGowan said CBD expected the latest acquisition to enhance its capabilities with current projects and activities, which include two wind farms in NSW, totalling 120MW, energy storage in China as part of a US$500 million solar farm and investment in Power Plant.
"CBD's wind projects in NSW and the renewable energy projects on King Island and the Chatham Islands will be managed by CBD under 20-year agreements, providing an assured cash-flow to CBD for those periods," he said.
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Other CBD Energy articles
Other CBD Energy news
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09/03/10 CBD Energy's eco-Kinetics wins Ergon solar contract
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01/02/10 CBD Energy completes $18m raising, company transforming eco-Kinetics acquisition
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17/12/09 CBD Energy to raise up to $27.5m for acquisition, projects
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19/11/09 CBD Energy purchases 20% of Planet Power
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17/11/09 CBD Energy shares up 16% after signing agreement with Chinese utility group
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09/11/09 CBD Energy receives $15.28 million Federal Government grant for King Island Project
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10/09/09 CBD Energy looks at second wind farm project in Australia