Array Technologies Merges With Shoals in Deal Valued Above $1 Billion

Array Technologies, a New Mexico-based maker of solar trackers, announced on Wednesday that it is merging with Shoals Technologies Group, a Tennessee firm that manufactures electrical wiring for solar projects. The transaction is valued at more than $1 billion and combines two major suppliers of equipment for the renewable energy sector.

Leadership changes accompany the merger. Kevin Hostetler, who has led Array since April 2022, will move to a special adviser position. Brandon Moss, the current CEO of Shoals, will take over as CEO of the combined entity. Brad Forth, a board member at both companies since their public listings, will chair the new board.

Despite the size of the deal, the combined company will keep its headquarters and principal place of business in New Mexico. The legal name of the merged firm will remain Array, though it is expected to adopt a new name and ticker symbol in the future. Currently, Array trades on the Nasdaq under the ticker ARRY.

Shoals shareholders will hold roughly 65% of the ownership stake in the new company. Both firms serve the solar industry, with Array producing structural trackers and Shoals supplying electrical components. The merger aims to bundle these products for customers who already use one of the two companies' systems.

Financial projections for the combined business indicate revenue between $2.2 billion and $2.4 billion in 2027. The company anticipates earnings of up to $480 million for that year. Management also expects to capture $20 million in cost savings related to overhead and other expenses.

Market reactions were positive following the announcement. Array shares rose nearly 15% to close at $5.33 per share. Shoals shares climbed 8% to approximately $9.16 per share by Wednesday evening.

An Array spokesperson stated in an email that the merger does not alter existing manufacturing operations or commitments to local communities. Brandon Moss noted during an earnings call that only 20% of solar projects currently use products from both companies, indicating room for expanded cross-selling.