LGC Skyrota operates two business divisions: LGC, which rebuilds gearboxes for large wind turbines, and Skyrota, which manufactures a 5kW small vertical-axis wind turbine.
Thomas Braun, president and CEO of LGC Skyrota, said: “This deal brings together two businesses that have excellent opportunities in the rapidly growing wind energy sector. The European market in particular has a number of compelling aspects, including much higher electricity rates than North America, dedicated government support and a large installed base.
“LGC is strongly positioned to service the approximately 3,500 large utility-size wind turbines currently operating in the UK and Ireland – each of these turbines will require gearbox rebuilding at least twice in their lifetimes, at an average rebuild cost of about $50,000 each time.”
LGC said that the Skyrota turbine was recently chosen for the Long Sutton Earth-Sheltered Social Housing Project. It is currently sold exclusively through distributors in Ireland, the UK and Italy. The company is currently expanding its distribution network throughout Europe and has plans to enter the North American market at a later stage.
The terms of the acquisition include a cash payment of $680,000 and 15,686,500 common shares and 2,000,000 warrants. The company also closed a concurrent public offering of $3.5m at 12.5 cents per share.
LGC’s current customers include Vestas, Airtricity, Viridian Power, and Hibernian Wind Power.
