Renewables
Array and Shoals agree to stock-for-stock solar merger
Array Technologies and Shoals Technologies Group have reached a definitive agreement for a stock-for-stock merger to form an integrated solar and battery storage infrastructure provider.
Key points
- Array will become the legal acquirer and corporate parent of the combined entity.
- Shoals investors are set to own roughly 65% of the basic shares after completion.
- The transaction is anticipated to close in the first quarter of 2027, pending regulatory and shareholder nods.
What happened
Array Technologies and Shoals Technologies Group have entered into a definitive transaction to combine their operations into a single corporate structure focused on utility-scale solar and battery storage systems, according to reports by Power Technology and Mercom India. Under the arrangement, Array will serve as the corporate parent while Shoals participants receive 1.6931 Array shares for every single share they currently hold.
Upon finalisation, Shoals equity holders will control about 65% of the basic shares in the newly formed business, or 64.5% on a fully diluted basis. Array participants will retain the remaining portion. The unified enterprise intends to streamline project execution by combining structural balance-of-system offerings with electrical infrastructure components, wire management utilities, and power delivery systems.
Leadership appointments for the combined entity include Shoals chief executive Brandon Moss taking the role of chief executive officer, while Array chief executive Kevin Hostetler transitions into a special advisor position. Brad Forth is slated to chair the board of directors, which is expected to consist of ten members drawn equally from both predecessor firms alongside Forth and Moss. Preliminary projections indicate full-year 2027 revenues between $2.2bn and $2.4bn.
What comes next
The companies anticipate finalising the transaction during the opening quarter of 2027, subject to customary closing parameters, Nasdaq listing authorisations, and approvals from regulators and shareholders. Leadership anticipates generating over $100m in annual adjusted EBITDA synergies within three years following the close, alongside an initial redemption of $317.5m in Array Series A Perpetual Preferred Stock.
Why it matters
Consolidation within the solar hardware and electrical balance-of-system sectors highlights ongoing structural shifts in the global renewable energy supply chain. For international energy investors and project developers, larger integrated suppliers can lower logistics expenses and simplify procurement bottlenecks for utility-scale photovoltaic and battery installations. While sub-Saharan Africa continues to navigate unique infrastructural and financing hurdles in expanding clean energy generation, global manufacturing trends and component costs directly influence the economic viability of imported solar technology across emerging markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
27.8% of electricity in the world was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
