ARRAY Technologies to Acquire APA Solar

Rhea-AI Summary

ARRAY Technologies (ARRY) has announced the acquisition of APA Solar for an enterprise value of $179 million, representing 7.6x APA's trailing 12-month EBITDA. APA Solar, an Ohio-based manufacturer of engineered foundation solutions and fixed-tilt mounting systems, generated $129 million in revenue and $25 million in EBITDA in 2024. The strategic acquisition expands ARRAY's addressable market by 40% and will enable the company to offer an integrated tracker + foundation system for challenging soil conditions. The deal includes $168 million in upfront cash, $42 million in deferred consideration, and a potential $40 million performance-based earnout. The transaction is expected to close in Q3 2025 and be accretive to ARRAY's Adjusted EPS in the first year before synergies. APA's management team will continue leading the new Foundation Solutions Business division.

Positive

• Expands addressable market by nearly 40% with domestically manufactured products eligible for incentives
• Expected to be high-single-digit percentage accretive to Adjusted EPS in year one before synergies
• APA's strong financial performance with $129M revenue and $25M EBITDA in 2024
• Enables integrated tracker + foundation system for challenging soil conditions without specialized equipment
• Retention of APA's experienced management team to lead new Foundation Solutions Business

Negative

• Significant upfront cash requirement of $168 million plus future payments
• Integration risks associated with combining two different product lines and operations
• Transaction completion subject to regulatory approval and closing conditions

Insights

Financial Analyst

ARRAY's $179M APA acquisition expands addressable market 40%, adds engineered foundations, boosts domestic manufacturing, with first-year EPS accretion.

ARRAY Technologies' $179 million acquisition of APA Solar represents a strategic expansion that significantly enhances the company's product portfolio and market reach. At 7.6x APA's trailing EBITDA (excluding 45X credits), the valuation appears reasonable for a transaction expected to deliver high-single-digit accretion to Adjusted EPS in year one, even before accounting for potential synergies.

The acquisition expands ARRAY's addressable market by nearly 40%, introducing domestically manufactured engineered foundations and fixed-tilt solutions that qualify for domestic content incentives. This is particularly significant as these components address the growing challenge of difficult soil conditions in new solar installations, which have traditionally limited development potential.

The financial structure includes $168 million in upfront cash consideration and $42 million in deferred payments, offset by $31 million in tax benefit present value. The retention of key executives through employment-conditional deferred payments demonstrates a thoughtful approach to leadership continuity.

APA's $129 million revenue and $25 million EBITDA (2024) provide immediate scale, while the potential $40 million performance-based earnout aligns incentives for growth. The transaction leverages complementary technologies and manufacturing capabilities while maintaining APA's Ohio operations, supporting ARRAY's domestic production strategy amidst favorable policy incentives for U.S.-made solar components.

This acquisition represents a calculated strategic move that strengthens ARRAY's competitive position by integrating tracker and foundation technologies, addressing a specific market need while expanding into adjacent product categories with established revenue streams.

Solar Industry Expert

ARRAY's APA acquisition creates an integrated tracker-foundation solution for challenging soil conditions, expanding capabilities in domestic manufacturing.

This acquisition addresses a critical technical gap in the utility-scale solar market by combining ARRAY's tracking systems with APA's specialized foundation solutions. The integrated tracker + foundation system will be particularly valuable for projects facing hard, mixed, and frost heave soil conditions – increasingly common challenges as developers move beyond prime locations into more technically demanding sites.

The solar industry has been progressively moving into regions with more challenging geotechnical conditions, where standard pile-driven foundations are insufficient or cost-prohibitive. APA's engineered foundation solutions enable development in these previously unviable locations without requiring specialized installation equipment, potentially accelerating project timelines and reducing construction costs.

The addition of fixed-tilt mounting systems to ARRAY's portfolio is equally significant, as it allows the company to address the commercial and industrial solar segment, particularly strong in the Northeast and Midwest regions. This diversification reduces ARRAY's dependence on the utility-scale tracker market and provides complementary seasonal revenue streams.

The domestic manufacturing component carries substantial strategic value under current U.S. policy conditions. APA's Ohio manufacturing facility produces systems eligible for domestic content incentives, positioning the combined entity to capitalize on IRA tax credits and domestic content requirements in utility-scale projects.

By maintaining APA's commitment to supply foundations for other tracker systems, ARRAY demonstrates a pragmatic approach to market expansion without alienating potential integration partners. This positions the combined entity as both a component supplier and integrated system provider, maximizing market opportunities while addressing the industry's growing need for specialized foundation solutions in challenging environments.

Advancing ARRAY’s balance of systems strategy with leading engineered foundation solutions and fixed-tilt mounting systems

• Adds domestically manufactured engineered foundations and fixed-tilt solutions to product portfolio, expanding addressable market by nearly 40%

• Enables integrated tracker + foundation system to address challenging soil conditions, which does not require specialized equipment to install

• Expands U.S. manufacturing capabilities with new Ohio manufacturing facility

• Transaction enterprise value of approximately $179 million represents a multiple of 7.6x APA’s trailing 12 months EBITDA excluding 45X credits

• Expected to be high-single-digit percentage accretive to Adjusted EPS in year one before synergies

• Closing expected in the third quarter of 2025, subject to regulatory approval and customary closing conditions
  

ALBUQUERQUE, N.M., June 18, 2025 (GLOBE NEWSWIRE) -- ARRAY Technologies (NASDAQ: ARRY) ("ARRAY" or the "Company"), a leading global provider of solar tracking technology products, software, and services for utility-scale solar energy projects, today announced it has entered into a definitive agreement to acquire APA Solar, LLC ("APA"), a leading provider of engineered foundation solutions and fixed-tilt mounting systems for solar projects. APA’s products are manufactured in Ohio and are eligible for incentives tied to domestic content. APA generated approximately $129 million of revenue and $25 million of EBITDA excluding 45X credits in 2024. The acquisition of APA is expected to be accretive to ARRAY’s Adjusted EPS in year one before synergies.

Following the closing of the acquisition, ARRAY will begin offering an integrated tracker + foundation system, leveraging ARRAY’s advanced solar tracking technology and APA’s innovative foundation solutions. The integrated product offering will provide EPCs and developers a domestically manufactured, easy to install solution for the hard, mixed, and frost heave soil conditions that are increasingly prevalent in new solar projects. ARRAY will also continue to offer APA’s foundation solutions for other tracker systems as well as the company’s fixed-tilt racking products which are widely used in commercial and industrial solar projects in the Northeast and Midwest.

"We are thrilled to announce the acquisition of APA, a strategic move that strengthens our capabilities and expands the value we deliver to our customers. Demand for engineered foundations is growing rapidly because of their ability to make projects in areas with more challenging soil conditions economically viable. APA has a proven foundation system that performs in the toughest soil conditions, and is more efficient and less costly to install than competitors’ offerings,” commented Kevin G. Hostetler, Chief Executive Officer of Array. Mr. Hostetler added, “The market has been asking for an integrated tracker plus foundation platform - with this acquisition, ARRAY will be in a position to deliver it. We have a shared vision with APA for what our combined technologies can achieve for customers and I’m incredibly excited about the new opportunities we will be able to unlock together.”

Josh Von Deylen, Chief Executive Officer of APA, said "Joining forces with ARRAY is a tremendous opportunity for our team and our customers. With our shared commitment to innovation and excellence, we’re excited to combine our strengths to drive even greater value for our solar industry partners. This acquisition marks the beginning of an exciting new chapter for our business."

Joe Von Deylen, Chief Operations Officer of APA, added “This is a pivotal moment for the APA team. With ARRAY, we gain access to expanded resources, additional expertise, and a global commercial platform to scale our business. We’re confident this partnership will enhance our ability to serve customers in the utility scale segment and further drive our operational excellence.”

The transaction values APA at approximately $179 million or 7.6x trailing 12 months EBITDA excluding 45X credits, comprised of $168 million of upfront cash consideration, and $42 million of deferred consideration less $31 million of net present value of tax benefits generated as a result of the transaction. The deferred consideration is payable in two equal installments on the first and second anniversary of the closing, each conditioned on the continued employment of Josh and Joe Von Deylen; and may be paid in cash or stock at ARRAY’s option. The final amount of upfront cash consideration and deferred consideration will be determined at closing subject to customary purchase price adjustments. The sellers of APA are also eligible for a performance based earnout with an initial value of $40 million of ARRAY common stock based upon APA’s achievement of certain EBITDA targets during the three-year period following the closing.

Josh Von Deylen and Joe Von Deylen, the Chief Executive Officer and Chief Operations Officer of APA, respectively, as well as the rest of the company's senior management team, will remain with APA following the closing of the acquisition and lead the new “Foundation Solutions Business” of ARRAY. APA’s headquarters and principal manufacturing operations will continue to be located in Ridgeville Corners, Ohio.

Transaction Approvals and Closing Conditions
The transaction is expected to close in the third quarter of 2025, subject to receiving any required regulatory approvals and the satisfaction of other customary closing conditions. Jefferies LLC acted as exclusive financial advisor and Kirkland & Ellis acted as legal advisor to ARRAY in connection with the transaction. Donelly Penman & Partners acted as exclusive financial advisor, and Rupp, Hagans & Bohmer, LLP and Eastman & Smith as legal advisors to APA.

Additional information regarding the transaction will be included in a Current Report on Form 8-K to be filed by ARRAY with the U.S. Securities and Exchange Commission (the “SEC”).

Transaction Conference Call
ARRAY will conduct a conference call today at 8:30 a.m. EDT to discuss the transaction. A live webcast of the event will be available on the investor relations section of ARRAY’s website at ir.arraytechinc.com. A replay of the webcast will be available for all stakeholders on the investor relations website following the conclusion of the event.

Additional Resources
Associated presentation materials regarding the transaction are available on the investor relations section of ARRAY’s website.

About ARRAY Technologies, Inc.
ARRAY Technologies (NASDAQ: ARRY) is a leading global provider of solar tracking technology to utility-scale and distributed generation customers who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY’s high-quality solar trackers, software platforms and field services combine to maximize energy production and deliver value to our customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology – relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com.

Media Contact:
Nicole Stewart
505.589.8257
nicole.stewart@arraytechinc.com

Investor Relations Contact:
ARRAY Technologies, Inc.
Investor Relations
investors@arraytechinc.com

Forward Looking Statements
This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "anticipates," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "will," "would," "designed to" or similar expressions and the negatives of those terms. Forward-looking statements include statements regarding the proposed acquisition of APA, the anticipated benefits (including synergies) of the proposed transaction, the anticipated impact of the proposed transaction on the Company’s business and future financial and operating results, the expected timing of the proposed transaction, including the expected closing date of the acquisition and the timing of expected synergies and returns from the proposed transaction, and the Company’s future financial position, business strategy, revenues, earnings, free cash flow, costs, capital expenditures and debt levels of the combined company, and plans and objectives of management for future operations. Actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks, uncertainties and other factors, including without limitation: the ability to complete the proposed transaction on anticipated terms and timetable; ARRAY’s ability to integrate APA’s operations in a successful manner and in the expected time period; the Company’s ability to achieve the strategic and other objectives relating to the proposed transaction; the possibility that various closing conditions for the proposed transaction may not be satisfied or waived; and risks relating to any unforeseen liabilities of APA; Forward-looking statements should be evaluated together with the risks and uncertainties that affect our business and operations, particularly those described in more detail in the Company’s most recent Annual Report on Form 10-K and subsequent reports and other documents on file with the SEC, each of which can be found on our website, www.arraytechinc.com. The forward-looking statements included in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Non-GAAP Financial Information

This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including EBITDA.

“EBITDA” means, with reference to any historical period of APA Solar, net income (loss) to common shareholders plus interest expense, income tax expense (benefit), depreciation, and amortization.

We believe that the presentation of EBITDA enhances the reader’s understanding of past financial performance and future prospects. Our management team uses EBITDA in assessing performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

EBITDA, as used in this press release, may be different from, and thus may not be comparable to, similarly titled non-GAAP measures used by other companies.

In the case of non-GAAP financial measures presented for future periods, the Company advises that it is unable to provide reconciliations of such measures without unreasonable effort. Accordingly, such measures should be considered in light of the fact that no GAAP measure of performance or liquidity is available as a point of comparison to such non-GAAP measures.

FAQ

What is the acquisition price for ARRAY Technologies' purchase of APA Solar?

ARRAY Technologies is acquiring APA Solar for an enterprise value of approximately $179 million, representing 7.6x APA's trailing 12-month EBITDA excluding 45X credits.

How will the APA Solar acquisition impact ARRAY's (ARRY) financial performance?

The acquisition is expected to be high-single-digit percentage accretive to ARRAY's Adjusted EPS in the first year before synergies, with APA contributing $129 million in revenue and $25 million in EBITDA based on 2024 figures.

What are the payment terms for ARRAY's acquisition of APA Solar?

The deal includes $168 million in upfront cash, $42 million in deferred consideration payable over two years, and a potential $40 million performance-based earnout in ARRAY common stock.

How does the APA Solar acquisition expand ARRAY Technologies' market opportunity?

The acquisition expands ARRAY's addressable market by nearly 40% by adding domestically manufactured engineered foundations and fixed-tilt solutions to their product portfolio.

When is ARRAY Technologies expected to close the APA Solar acquisition?

The transaction is expected to close in the third quarter of 2025, subject to regulatory approval and customary closing conditions.