HENDERSON, Nev. - Blue Earth Inc. announced that it has closed its letter of intent to acquire Castrovilla Inc. Castrovilla was acquired for $2.15 million payable in 1,279,762 restricted shares of Blue Earth common stock valued at $1.68 per share and $200,000 for debt retirement.
Founded in 2004 and based in Mountain View, Calif., Castrovilla had approximately $3.5 million in revenues in 2010, more than double its 2008 revenues. Revenues are forecasted to exceed $5 million in 2011.
“We are pleased to join the Blue Earth family and are excited about the opportunities our partnering will bring,” said Castrovilla’s President John Pink. “We have grown our business steadily since its inception and have developed strong relationships with several Northern California utilities as well as with several thousand small business customers. Joining Blue Earth enables us to more rapidly expand our energy efficient retrofit services and will give our existing customers the opportunity to utilize the products and services from any future Blue Earth company.”
Castrovilla serves over 6,000 small businesses and several utilities in Northern California. For its small business customers, the company performs energy audits and comprehensive commercial refrigeration efficiency upgrades in restaurants, supermarkets, refrigerated warehouses, and other businesses, reducing its customers’ utility expenses.
“The acquisition of Castrovilla establishes our market presence in the energy efficiency services sector and brings a rapidly growing company to the Blue Earth family,” said CEO Dr. Johnny R. Thomas. “It provides Blue Earth with seasoned business developers, important relationships with utilities, and a large customer base that includes regional and national companies.”
For more information, visit www.blueearthinc.com.