CUI Global has signed a deal to acquire solar construction firm Reach Construction Group in the US.

Based in in Apex, North Carolina, Reach is an engineering, procurement and construction (EPC) company with expertise in the renewable energy industry. 

The transaction includes third-party debt and company equity valued at nearly $37m excluding working capital and some other adjustments.

Reach acquisition is expected to close within the next 20 days

The transaction is the first step in CUI Global’s strategic plan to emerge as a diversified energy infrastructure services company.

Subject to customary closing condition, the deal is expected to be completed within the next 20 days.

CUI Global vice chairman and CEO Jim O’Neil said: “Reach is a recognised market leader in providing renewable energy EPC services and the leadership team has over 50 years of combined industry experience successfully delivering renewable energy projects to their customers.

According to CUI Global, Reach has a contractual backlog for 2020 that surpasses $100m. 

The acquisition will allow CUI Global to expand its energy services business into the alternative energy industry and increase its revenue, while also contributing positive net earnings.

Meanwhile, Reach will benefit from a diversification of its current capabilities into a broader set of service offerings in the energy infrastructure market.

Reach CEO and founder Brandon Martin said: “We, at Reach, are excited to become a part of the CUI Global energy team and to help lead the way toward a net zero carbon emissions future. 

“With solar accounting for 40% of all new electric generating capacity in 2019, the acquisition of Reach gives CUI Global a competitive advantage over other traditional energy companies who have yet to make the transition toward a clean energy future.”