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A review on Real Goods Solar and Regrid Power’s merger

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 16, 2008

Real Goods Solar, Inc. , a leading residential solar energy integrator, announced today that it has expanded its business through a merger with Regrid Power, Inc. of Campbell, CA. This transaction represents the Company’s fourth acquisition in less than a year. Regrid Power, Northern California’s leader in custom engineered solar electric systems primarily for residential customers, generated over $15 million of revenue and positive operating income for the twelve months ended September 30, 2008. Consideration paid, including debt assumed, was less than one times trailing twelve months revenue, and will consist of one-third cash and two-thirds stock, as well as an ‘earn out’ provision. This strategic transaction is consistent with Real Goods’ strategy of driving profitable growth through the acquisitions of established market leaders with reputations for quality, in addition to its organic growth.

We are happy to announce our business has expanded through a merger with Regrid Power, Inc. of Campbell, CA. Regrid Power joins our family of local solar integrators who have established market leadership and reputations for quality and service excellence. Regrid has offices in Campbell, Richmond and Fresno, CA.

“By combining our operational efficiencies and design excellence with Real Goods Solar, a solar pioneer and an industry leader, we will have an enhanced ability to scale and deliver our outstanding service to a much larger population of customers,” said Tom McCalmont, CEO of Regrid Power. “Real Goods is the original solar company and has a philosophy that is very compatible with Regrid’s.”

“This transaction establishes Real Goods as the undisputed market leader in residential solar installations, and we are very excited to integrate Regrid’s design excellence and unique power output guarantee,” said John Schaeffer, CEO of Real Goods Solar. “We are pleased to further strengthen our position in Northern California and we believe Regrid Power is a good example of how we continue to leverage our existing infrastructure with strategic acquisitions that offer an established customer base, compatible geography and realizable synergies.”

Regrid Power, Inc. custom designs and builds solar power systems that produce the optimal amount of power for each customer. Regrid Power backs their work with a performance guarantee unique in the industry, the PowerPledge. Since its founding in 2002 by Tom and Darlene McCalmont, Regrid Power has installed over 1,000 PV systems representing approximately 5MW of generating capacity, and the company demonstrates design excellence through its six NABCEP certified PV designers on staff.

John Schaeffer

John Schaeffer is our President having founded Real Goods in 1978. He currently spends most of his time running and marketing our solar programs, working on business development, and ensuring the store at the Solar Living Center has fresh product and remains the world’s premier destination for renewable energy and sustainable living.

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