Real Goods Solar Inc., the U.S. photovoltaic panel installer whose shares have more than tripled this year, agreed to buy closely held Mercury Energy Inc. to pursue East Coast customers.
Real Goods will issue 7.9 million shares to acquire Port Chester, New York-based Mercury, the Louisville, Colorado-based company said in a statement today. The deal is subject to approval from both companies’ shareholders. Mercury generated $35 million in sales last year, has about $10 million in cash and no debt.
“This acquisition significantly expands our presence as a major solar solutions provider in key solar markets across the East Coast,” Real Goods Chief Executive Officer Kam Mofid said in the statement. “It also strengthens our balance sheet with additional working capital.”
Real Goods surged 10 percent to $2.29 at the close in New York, the most since July 15.