Broadwind Energy agreed to acquire Sanford, N.C.-based Red Wolf Co. LLC in a $16.5 million deal that will expand its service area and diversify its product portfolio, according to a Jan. 30 release.
Red Wolf mainly supports the global gas turbine market as a privately held fabricator, kitter and assembler of industrial systems. The companies are planning to sign a definitive agreement and close the deal Feb. 1.
A portion of the purchase price will be applied to pay off Red Wolf's outstanding debt. The sellers may become qualified to contingent consideration of up to $9.9 million in cash and up to 50% of Broadwind Energy's common stock, according to the release.
"The Red Wolf team has built a strong, growing business which aligns well with our capabilities, and supports our vision for growth. Red Wolf's sales are primarily in the after-market space, where the company supports the large, global installed base of utility-scale natural gas-fired turbines," Broadwind President and CEO Stephanie Kushner said in a statement.
Broadwind Energy plans to keep Red Wolf's operations in Sanford under current President Kim Sutton.