Blue Earth completes renewable acquisition
Blue Earth, a renewable energy and energy efficiency services company, has announced that it has completed the acquisition of an EPCM company (engineering, procurement, construction & management) and an affiliated renewal energy company that specialize in the combined heat and power ("CHP") alternative energy space. BBLU is purchasing the Acquisitions, IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc.
Dr. Johnny Thomas, CEO of BBLU, stated that "these Acquisitions are a transformative event for BBLU as they enable us to become a significant independent power producer ('IPP'), accelerate revenue growth and help insure the transition to positive EBITDA for 2013 and profitable operations for 2014."
BBLU is funding permitting and remaining development tasks for the initial projects from a portion of the proceeds of a recent private placement, while BBLU finalizes project financing terms for the total construction costs of over $120 million. Management anticipates that the projects will be financed primarily through project debt, which will allow BBLU to maintain ownership of the projects without significant share issuances for equity. BBLU is continuing to perform engineering tasks on additional power plants for the same customer, in anticipation of adding several more construction projects. Sellers of the Acquisitions earn bonuses when they build additional power plants, as expected.
