Harbert Australian Private Equity Fund I has acquired an 18.1 per cent initial equity interest in Solar Shop Australia, an installer of grid connect solar systems in Australia.
Harbert Australian Private Equity Fund I has acquired an 18.1 per cent initial equity interest in Solar Shop Australia, an installer of grid connect solar systems in Australia.
The transaction values the business at an enterprise value of AUD50m.
Solar Shop is the largest provider of grid connect solar systems in Australia having installed one in four of all solar PV systems on Australian homes in 2008. Solar Shop operates in all major Australian capital cities as well as accessing regional Australia through a mobile network of renewable energy consultants.
With the backing of Harbert, Solar Shop plans to strengthen its core markets and continue to roll out sales offices around Australia.
The existing management team will predominantly remain in place with Adrian Ferraretto as managing director and Tony Thornton as chief executive. The company has also recruited a team of solar industry experts.
Ferraretto says: ‘We are thrilled to be taking on Harbert as an investment and strategic partner in Solar Shop Australia. We have built this business from scratch over the past ten years and are now in a position where we want to take the company to the next stage in its growth and development. We believe Harbert is the right partner for Solar Shop Australia, bringing the depth of experience in working with businesses such as ours and providing access to capital at time when many businesses are highly capital constrained. ‘
Jeremy Steele, managing director of Harbert Australia Private Equity, says: ‘With electricity prices forecast to increase by up to eight per cent annually to 2012, and the diminishing price differential to consumers between fossil fuel and solar power, we expect this space to be a major growth industry in the coming years.’
Harbert has also had the first close of its Harbert Australian Private Equity fund, with a commitment of AUD40m seed capital from its sponsored affiliate and parent Harbert Management, the USD2.5bn independent alternative investment firm based in Alabama, US.
Over the course of the next 12 to 18 months Harbert is planning to raise further capital for an approximately AUD100m fund from investors in Australia and offshore.
The fund will be focused on investment in Australian companies within the lower to middle market. Geographically, the investment team will focus on investments within Victoria and South Australia.
