Array Technologies, Shoals agree to $1 billion merger

Array Technologies and Shoals Technologies Group agreed to merge on Wednesday in a transaction valued at more than $1 billion. The deal combines two major suppliers of solar project equipment, with Array manufacturing trackers and Shoals producing electrical wiring.

Brandon Moss, currently the chief executive of the Tennessee-based Shoals, will lead the merged entity. Kevin Hostetler, Array’s CEO, will transition to a special adviser role. Although Shoals shareholders will hold approximately 65% of the new company, the combined business will keep its headquarters and principal place of business in New Mexico.

The entity will operate under the legal name Array for now. Moss stated that the company will announce a new name and ticker symbol later. Array’s stock, which trades on the Nasdaq under the symbol ARRY, rose nearly 15% to $5.33 per share by the close of trading Wednesday. Shoals shares gained 8% to about $9.16.

Moss told investors on an earnings call that the merger aims to accelerate revenue growth and improve profitability. He noted that only 20% of current solar projects utilize products from both firms. The combination will allow the company to offer a complete product portfolio to existing customers.

Array projects the merged company will generate between $2.2 billion and $2.4 billion in revenue in 2027. Earnings for that year could reach $480 million. The companies expect to secure $20 million in cost savings from overhead and other expenses.

Brad Forth will chair the new board of directors. He has served on the boards of both companies since they went public. Forth thanked Hostetler for building Array into a broader platform. Hostetler, who was named CEO in April 2022, recently oversaw a $50 million factory expansion on Albuquerque’s West Side.

An Array spokesperson said the merger will not alter existing manufacturing operations or commitments to local communities. Ron Corio founded Array in 1989 and served as its CEO until 2018.