Solaris Oilfield Infrastructure Inc. has accomplished its $200 million acquisition of Cellular Power Leases LLC (MER), marking the nicely tools supplier’s entry into the vital distributed energy infrastructure options market.
It has now additionally renamed as Solaris Power Infrastructure Inc. to replicate the expanded enterprise. MER’s operations primarily contain offering pure gas-powered cellular generators and ancillary vitality tools, in keeping with Solaris.
MER’s leaders joined Solaris as a part of the settlement. “We’re excited to mix our complementary ability units and differentiated applied sciences beneath the brand new ‘Solaris Power Infrastructure’ identify”, Solaris chair and chief government Invoice Zartler mentioned in an organization assertion.
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“This transaction brings to us an skilled group, a highly-contracted base enterprise and visual progress through dedicated deliveries for brand new tools that place Solaris for progress throughout a number of finish markets, together with each the oilfield and industrial and industrial areas comparable to knowledge facilities”, Zartler added.
The transaction, introduced July 9, 2024, concerned the issuance by Solaris of almost 16.5 million widespread items, or 27 p.c of Solaris’ excellent shares, to MER’s founders and administration officers.
Solaris is anticipated to have spent $60 million for the money portion of the merger, which carries an “preliminary buy a number of of 4.0x run-rate contracted adjusted EBITDA”, in keeping with the deal announcement.
The acquisition marks Solaris’ entry into the vital distributed energy infrastructure options market. Over half of the operations of the ensuing entity can be within the energy infrastructure sector, in keeping with Solaris.
MER’s asset base represents 153 megawatts (MW) of electrical energy era, at the moment absolutely utilized, in keeping with the July announcement. Solaris projected the asset would develop to 478 MW by the top of the third quarter of 2025. MER was based 2022 and, like Solaris, is predicated in Houston, Texas.
“Operational synergies can be found to the mixed platform through Solaris’ engineering, manufacturing, area service, industrial and company infrastructure”, Solaris mentioned on the time.
“MER’s options complement our all-electric providing and supply entry to new end-market alternatives, together with oil and fuel manufacturing, midstream and downstream actions in addition to varied C&I [commerce and industry] purposes”, Zartler mentioned. “As we consider the ‘electrification of all the things’ and computing energy progress wants, we imagine dependable energy entry will turn out to be a rising problem that bigger scale, distributed energy era property are well-positioned to deal with”.
John A. Johnson, MER founder and co-owner mentioned, “We acknowledge important worth in Solaris’ present providing, together with a complementary area service group that’s expert in mobilizing and commissioning electrical tools, in addition to engineering and manufacturing capabilities that may present synergies for our enterprise”.
To assist fund the acquisition, Solaris has entered into a brand new $325 million senior secured time period mortgage and is finalizing a brand new $75 million revolving credit score facility, it mentioned saying deal completion.
“These new credit score agreements change the $300 million secured bridge time period mortgage facility secured on the time of the transaction announcement”, Solaris mentioned.
To contact the writer, e-mail jov.onsat@rigzone.com
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