Gibraltar Industries, Inc. (NASDAQ: ROCK) has announced the sale of its renewables electrical balance-of-systems (EBOS) business to a subsidiary of GameChange Energy Technologies Corp. for $70 million in cash. This move is part of Gibraltar's strategic plan to simplify and focus its asset portfolio on the building products and structures end-markets.
The proceeds from the sale will be applied to debt reduction, aligning with the company's efforts to strengthen its financial position. In addition to the EBOS business, Gibraltar is also in the process of selling its renewables racking and foundations business, with the intention of using the proceeds from both transactions to reduce debt.
Chairman and CEO Bill Bosway highlighted that the divestiture of the EBOS business is the first step in a two-step process to align the renewables business with industry leaders. The sale of the EBOS technology to GameChange Energy Technologies Corp. is seen as strategically beneficial, as it fulfills a strategic need for the acquiring company while allowing Gibraltar to focus on its core markets.
Gibraltar's financial advisor for this transaction was Perella Weinberg, and Honigman LLP served as the company's legal counsel.
This sale reflects Gibraltar's commitment to reshaping critical markets in comfortable living and productive growing throughout North America, as the company continues to innovate in the residential, agtech, and infrastructure markets.
The press release did not include specific financial metrics or comparisons to the previous period. The market has reacted to these announcements by moving the company's shares -2.16% to a price of $57.00. Check out the company's full 8-K submission here.
