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January 5, 2010
Energy Focus of Solon completes acquisition of Stones River
SOLON, Ohio -- Energy Focus Inc., the Solon lighting manufacturer, said Tuesday that it has completed the $5 million acquisition of an electric contracting company called Stones River Cos.
Stones River, based in Nashville, Tenn., specializes in redesigning electrical systems for existing buildings to make them more energy efficient.
Energy Focus will pay SRC owners, TLC Investments LLC, $1.5 million in cash, and revenue-based benefits valued at about $3.5 million. Energy Focus, which announced its plan to buy Stones Rivers in September, says the deal will help the company sell more of its lighting products into the existing building market.
"Given the large open order log SRC brings to Energy Focus, we expect to start out 2010 with a dramatic growth in our energy services business," said chief executive Joe Kaveski in a statement.
In recent years, Energy Focus has shifted away from its legacy business, which was selling decorative and specialty fiber-optic lighting products. Today it is focused on selling energy efficient products that can be used in mainstream applications. The company still uses fiber-optics to enhance the light output of light-emitting diodes.
Energy Focus was hard-hit in 2009 because much of its sales were still tied to the ailing residential and commercial construction markets. Kaveski says the SRC acquisition provides valuable access to the existing building and public-sector markets.
With SRC's $50 million in government contracts lined up for 2010, Kaveski says the acquisition should bring the company back into the black this year