Feb. 16 (Bloomberg) -- CBD Energy Ltd., an Australian renewable energy company, agreed to buy Westinghouse Solar Inc. in a stock swap to enter the U.S. rooftop solar market.
CBD shareholders will own 85 percent of the combined company and owners of Campbell, California-based Westinghouse will hold the rest, the companies said today in a statement. Terms of the deal weren’t released.
“CBD has been looking for a point of entry into the U.S. market for some time and believes the acquisition of Westinghouse Solar is an ideal fit,” CBD Energy Chief Executive Officer Gerry McGowan said in the statement.
The deal is expected to close in the third quarter. CBD last month said it purchased $1 million in Westinghouse shares at 60 cents each.
Westinghouse Solar had a fourth-quarter loss of $1.27 million, or 9 cents a share, on sales of $3.3 million, the company said today in a separate statement.
Westinghouse fell 6.4 percent to 71 cents a share at 11:03 a.m. in New York. They had declined 65 percent in the past year through yesterday. CBD, based in Double Bay, Australia, rose 1.3 percent to 8.1 Australian cents.
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