Energy Conversion Devices and Solar Integrated Technologies Sign Definitive Merger Agreement
22 Juli 2009 - 8:00AM
PR Newswire (US)
Field Engineering and Technical Capabilities of Combined
Organizations to Enhance Customer Experience ROCHESTER HILLS,
Mich., LOS ANGELES, Calif., and LONDON, July 22
/PRNewswire-FirstCall/ -- Energy Conversion Devices, Inc. (ECD)
(NASDAQ: ENER), the leading global manufacturer of thin-film
flexible solar laminate products for the building integrated and
commercial rooftop markets, and Solar Integrated Technologies, Inc.
(SIT) (AIM: SIT.LN), a leading provider of building integrated
photovoltaic (BIPV) roofing systems, today announced that they have
signed a definitive agreement pursuant to which ECD will acquire
SIT. Under the terms of the agreement, ECD will pay 6.75 pence in
cash (or approximately $0.11) for each share of SIT (the "Merger
Consideration") or approximately $11.2 million. Including the
assumption of SIT's net debt obligations, the purchase price will
be approximately $16.3 million. ECD plans to finance the
acquisition from existing corporate funds. Mark Morelli, ECD's
president and chief executive officer said, "The acquisition of SIT
enhances our BIPV value proposition by significantly improving our
field engineering and technical capabilities in rooftop solar to
better support our channel partners in Europe and the U.S. Our
combined organization will also be well positioned to meaningfully
participate in the expected growth in the U.S. market, including
under the stimulus plan. We are extremely pleased to welcome SIT's
talented organization to our team." "We are excited to join forces
with the world's leader in building integrated and commercial
rooftop photovoltaics," stated R. Randall MacEwen, president and
chief executive officer of SIT. "As one of ECD's largest customers,
we have experienced first-hand the differentiated attributes of
UNI-SOLAR PV laminates, and their impressive power production
performance in real world conditions. We see compelling synergies
between SIT's customer relationships, end market knowledge and
system integration expertise and ECD's focus on operational
excellence." The transaction is subject to customary closing
conditions, including the approval of SIT's shareholders. SIT's
board of directors has unanimously recommended that shareholders
vote in favor of the agreement. All of SIT's directors who hold
common shares, representing a total of 11.5% of SIT's outstanding
shares, have entered into agreements to vote their shares in favor
of the merger agreement. SIT expects to issue a proxy circular
within the next 10 days and hold a shareholders' meeting to
consider the transaction on August 19, 2009, or as soon as
practicable thereafter (the "Effective Date"). The transaction is
expected to close within 60 days. On the Effective Date, the common
shares of SIT will be cancelled and automatically be converted into
a non-tradable right to receive the Merger Consideration. SIT
hereby gives notice for the purposes of AIM Rule 41 that the
listing of the Common Shares of SIT on AIM will be cancelled at
07:00 a.m. (London time) on August 20, 2009 (the "Cancellation").
SIT shareholders should note that a separate resolution to approve
the Cancellation will not be put to shareholders at the
shareholders' meeting on August 19, 2009 and that trading in SIT's
shares will cease after the Effective Date. Credit Suisse is acting
as financial advisor and Covington & Burling LLP is acting as
legal advisor to ECD. Thomas Weisel Partners LLC is acting as
financial advisor to SIT and has provided a fairness opinion to
SIT's board of directors. Greentech Capital Advisors is also acting
as financial advisor and Jones Day is acting as legal advisor to
SIT. About Energy Conversion Devices Energy Conversion Devices is
the leader in building integrated and commercial rooftop
photovoltaics, one of the fastest growing segments of the solar
power industry. The company manufactures and sells thin-film solar
laminates that convert sunlight to energy using proprietary
technology. ECD's UNI-SOLAR brand products are unique because of
their flexibility, light weight, ease of installation, durability,
and real-world efficiency. ECD also pioneers other alternative
technologies, including a new type of nonvolatile digital memory
technology that is significantly faster, less expensive, and ideal
for use in a variety of applications including cell phones, digital
cameras and personal computers. For more information, please visit
http://www.ovonic.com/. About Solar Integrated Technologies Solar
Integrated Technologies designs, manufactures and installs building
integrated photovoltaic (BIPV) roofing systems for commercial
rooftops. Its BIPV roofing systems enable customers to transform
unused space on the rooftop into a value-generating asset. Its
customers include Audi, Carrefour, Coca-Cola Enterprises,
Frito-Lay, Honeywell, IKEA, Johnson Controls, Metro, Portland
General Electric, ProLogis, San Diego Unified School District,
Tesco, Toyota, Unibail-Rodamco, U.S. Air Force, U.S. GSA, U.S. Navy
and Westfield. For more information, please visit
http://www.solarintegrated.com/. This release contains
forward-looking statements within the meaning of the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements that use the words
"will," "believes," "anticipates," "estimates," "expects,"
"intends", "accelerate", "transformation," or similar words that
describe the progress of the merger or ECD's, SIT's or the combined
company's future plans, objectives, or goals, and the assumptions
underlying such statements and other information that is not
historical information. All forward-looking statements are based
upon information available to us on the date of this release and
are subject to risks, uncertainties and other factors, many of
which are outside of our control, that could cause actual results
to differ materially from the results discussed in the
forward-looking statements. Risks that could cause such results to
differ include: the potential that the merger may not close, or may
not close as quickly as the parties anticipate; risks associated
with integrating the combined business of the two companies; and
market risks that will face the combined company. The risk factors
identified in the ECD filings with the Securities and Exchange
Commission, including the company's most recent Annual Report on
Form 10-K and most recent Quarterly Report on Form 10-Q, could
impact any forward-looking statements contained in this release.
Neither ECD nor SIT assumes any obligation, except as required by
law, to revise or update any forward-looking statement in order to
reflect events or circumstances that may arise after the date of
this release. DATASOURCE: Energy Conversion Devices, Inc. CONTACT:
Mark Trinske, Vice President, Investor Relations &
Communications of Energy Conversion Devices, +1-248-299-6063; or
Investors: R. Randall MacEwen, President & Chief Executive
Officer +1-562-299-0136; or Juliet Thompson or Chris Golden of
Nomura Code Securities Limited, Nominated Adviser and Joint-Broker,
+44 20 7776 1200; or Peter Krens of Mirabaud Securities Limited,
Joint-Broker, +44 20 7878 3362; or Media: Archie Berens, Pelham
Public Relations, +44 207 337 1523, all for Solar Integrated
Technologies, Inc. Web Site: http://www.ovonic.com/
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