Projo Biz Blog

SolarWrights, a Rhode Island-based solar energy company and Solar Works, a Vermont-based competitor, have been acquired by a private equity firm.

Riverside Partners of Boston said the deal merges the two companies to form the largest solar energy firm in the Northeast.

"We are delighted to be bringing together these two leading renewable energy companies, both of which have a track record of outstanding growth and high levels of customer satisfaction," said David Belluck, general partner at Riverside Partners, which said it focuses on technology and healthcare investments.

The merger and investment will help the combined company to expand, Riverside said.

The financial terms of the deal were not disclosed.

Riverside bought shares in both SolarWrights and Solar Works, said Robert Chew, founder and president of SolarWrights. But under the deal, current shareholders will continue to own shares in the combined firm, he said.

Chew said he still holds a "substantial" stake in the combined company. Before some recent acquisitions, Chew said he owned about 20 percent of SolarWrights. The remaining 80 percent was owned by about 15 partners, most of whom were employees, he said.

For now, the companies will continue to do business under their existing names until a new name is chosen, Chew said.

Chew founded SolarWrights in 1977, during a period in which energy prices were skyrocketing. Interest waned when fossil fuel prices receded. But over the past few years, as energy costs have again set new record highs, that interest has returned.

The company, based in Bristol, sells and installs photovoltaic panels that generate electricity from the sun's rays, as well as systems that warm water using the sun's heat.

About 80 percent of the company's sales come from residential installations, Chew said.
Chew said that SolarWrights has been growing quickly. He said he expects sales this year of $16 million to $18 million, compared with $4.9 million in 2007.

Solar Works, based in Wilton, Conn., is a similar-sized company in terms of sales, Chew said. That company's specialty is installing commercial solar systems.

Chew said that combining both companies will allow them to grow faster and better "defend their turf" -- the Northeast -- against large solar companies based in California.

"We're just absolutely thrilled to be able to play at the next level," he said. "Now we're getting to the same size as the California companies," he said. "It really gives us the resources we need to continue to grow throughout New England."

The acquisition won't affect employment levels or company locations, he said. The combined company will have 110 employees, 85 of whom worked for SolarWrights.
The financial headquarters and the residential side of the business will remain in Bristol, he said. Several employees at SolarWrights will take on management positions in the combined company, he said.

The commercial side of the business will be based in western Connecticut, he said. The company is looking to move from its Wilton location to a larger space, but the site has not been chosen yet, he said.

For Chew, the acquisition will shift away some of his business-related duties to other executives, allowing him to focus more on sales, marketing and training, a change he wanted, he said.

He has gone from being president of SolarWrights to president of the residential solar division of the new company.

"I'll be spending less time looking at income statements and balance sheets and reports and doing what I really love," he said.

The president of the combined company is Ronald French, who served as president of Solar Works. Tim Seamans, also of Solar Works, will be the chief operations officer.

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