Feb 1 2010
Solar Thin Films, Inc. (OTCBB: SLTZ) today announced that it intends to acquire Algatec Equity Partners LP, which owns a 47% equity interest in the capital stock of Algatec Solar AG, a growing producer of silicon crystalline solar panels and modules.
The stake in Algatec will be obtained in exchange for approximately 43.0 million shares of Solar Thin Films common stock; which number of shares are subject to adjustment based on an independent fairness opinion. Solar Thin Films is also continuing negotiations with the other Algatec stockholders to acquire the remaining 53% interest in the capital stock of Algatec.
Headquartered in Prosen, Germany, Algatec sells its modules primarily to a number of solar companies, including modules used in power projects. The acquisition of the partnership and its equity in Algatec is subject to (i) execution of definitive exchange agreements, (ii) obtaining the requisite approvals and consents of the partners of the partnership, and (iii) receipt of a fairness opinion. Solar Thin Films anticipates that the acquisition of the partnership and its 47% equity interest in Algatec will be completed in approximately 30 days.
Algatec's revenues for 2009 are estimated to be USD $30,000,000, with an estimated EBITDA of USD $2,000,000. Algatec has advised Solar Thin Films that, based on its order backlog, Algatec believes that it can realistically achieve USD $70,000,000 in revenues and EBITDA of USD $8,400,000 in its fiscal year ending December 31, 2010. As a result of the material increase in anticipated orders, Algatec has invested significantly in upgrading its equipment and expanding its manufacturing facilities. This investment is expected to increase production capacity from 18MW in 2008 to approximately 95MW in 2010, enabling Algatec to better meet the anticipated increase in demand for its PV modules from its customers.