Broadwind Energy said pre-market Wednesday it completed the acquisition of Red Wolf Company, a privately held fabricator, kitter and assembler of industrial systems in the global gas turbine market. Details of the takeover price undisclosed.
For external reporting purposes, Red Wolf’s financials will be combined with Broadwind’s nascent entry into the CNG compression systems business, which is currently operated out of Abilene, Texas.
The new business segment, Broadwind Process Systems, is expected to generate about $30-32 million of revenue and $4-5 million of non-GAAP adjusted EBITDA in 2017. The operating income impact of the acquisition will be determined after the third-party purchase allocation valuation has been finalized.
Broadwind plans to maintain Red Wolf’s operations in Sanford, North Carolina, under the continued leadership of Kim Sutton, president of Red Wolf. The takeover will enable Broadwind to expand its market reach, gain new capabilities and customer relationships, as well as diversify its product portfolio and geography, the company said in a statement.