ConEdison Development Acquires Three Key Assets of Juhl Energy, Inc.
Juhl Energy Inc., (OTC PINK: JUHL) ("Juhl Energy") a leading provider of clean energy solutions, announced the sale of certain of its subsidiary companies to ConEdison Development ("CED"), one of America's largest owners and operators of renewable energy infrastructure projects.
"This transaction represents the culmination of our successes over the past eight years and the strength of our ongoing business plan," stated Dan Juhl, Chairman and CEO of Juhl Energy. "We are honored to have sold these particular components of our business to a leading renewable energy company such as ConEdison Development. We're confident that CED has the capacity to create further value from these assets, while we devote our future efforts to three key areas in which we believe we possess a clear leadership position," added Juhl.
"Our ongoing focus will be centered on projects under 20 MWs, and specifically, the development of our standardized 5 MW wind/solar hybrid systems designed for rural communities and municipal electric companies. In addition, through our engineering subsidiary, Power Engineers Collaborative, LLC, we are seeing a growing pipeline of wind, solar and combined heat/power projects in this same size range for industrial, college, and healthcare campuses. Finally, we expect to rebuild our asset ownership business with new acquisitions of renewable energy assets under 20 MWs across our areas of expertise," continued Juhl.
"With this transaction, our balance sheet has been substantially strengthened with a strong cash position and the extinguishment of all of our long-term debt," said John Brand, Chief Financial Officer of Juhl Energy, Inc. "We expect that the proceeds from this transaction will allow us to provide a return to our shareholders in the form of either stock repurchases or a dividend during 2017. Of course, this is subject to a full analysis of our tax obligations, ongoing working capital needs and approval of our board of directors," added Brand.
While specific details of the transaction have not been disclosed, highlights of the acquisition include:
- CED has purchased Juhl Energy's interest in a portfolio of three operating wind projects that have a total capacity of approximately 36 megawatts ("MW") and are located in Minnesota and Iowa.
- CED has also acquired Juhl Energy Service Inc.'s operating and maintenance ("O&M") services business. The O&M unit currently supports ten individual projects and associated personnel.
- CED also acquired Juhl Energy's interest in a pipeline of wind projects, primarily larger projects, consisting of approximately 500 MW in the Mid-West.
CED and Juhl Energy expect to continue to co-develop projects together over the next few years.
ABOUT JUHL ENERGY, INC.
Juhl Energy is an established leader and pioneer in the renewable energy industry with a focus on competitive, clean energy solutions, including wind, solar, hybrid systems and heat/power projects designed for rural communities, municipal electric companies, and medium-sized industrial companies throughout the United States. Juhl Energy has completed 25 wind farms, accounting for over 350 MW's of wind power, and services every aspect of development from general consultation, construction and management, to system operations and maintenance. Juhl Energy is headquartered in Chanhassen, MN, and has other offices in Chicago, and Milwaukee.
FORWARD LOOKING STATEMENTS
This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Juhl Energy's current expectations about its future results, performance, prospects and opportunities. Juhl Energy has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Juhl Energy and are subject to a number of risks, uncertainties and other factors that could cause Juhl Energy's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements and specifically those statements referring to any specific projects, prospective acquisitions and wind farm assets mentioned herein.