Energy companies to merge

Looking to create a multistate solar integration powerhouse, Alteris Renewables has agreed to merge with Colorado-based Real Goods Solar.

Wilton-based Earth Friendly Energy Group Holdings L.L.C., which does business as Alteris Renewables Inc., has entered into an agreement to merge with Real Goods Solar Inc. of Boulder. The new company will retain the name Real Goods Solar, which has strong brand recognition in western states.

Real Goods Solar will issue 8 million unregistered shares of its Class A common stock to Alteris equity holders for 100 percent of Alteris”™ outstanding equity. The number of shares issued could be increased based on Alteris”™ 2011 financial performance or the achievement of outlined milestones.

Alteris has offices in Stonington and Stamford and more than 200 employees at its locations that include locations in Massachusetts, Maine, New Hampshire, New York, New Jersey, North Carolina, Pennsylvania, Rhode Island and Vermont. There had been no mention of layoffs concerning the merger.

Real Goods Solar said it expects to report revenue approaching $200 million through the next 12 months. The company has reported growth and profitability for seven consecutive quarters.

Bill Yearsley of Colorado has joined the company and will be its CEO and serve on its board of directors. Yearsley was previously chairman and CEO of the Construction and Aggregate Group, and an executive director of Redland plc, both British companies.

“Our ability to execute projects successfully is highly dependent on human resources, our most important asset,” Yearsley said. “Having the opportunity to bring together two very seasoned management teams positions our organization well for the future.”

He said the new company is capable of providing “integrated national project delivery.”

According to the U.S. Solar Energy Technologies Program, the nation”™s solar market is projected to grow fivefold in the next four years.

Steven Kaufman, current CEO and board member of Alteris, will join Real Goods Solar”™s board and will leave his position at Alteris.

“The Northeast and the West represent the two fastest-growing markets for solar installations in the country, driven by high energy prices and government incentives in each region,” Kaufman said. “Customers want to work with companies that can help them meet their renewable energy goals in multiple geographies. With the expanded operating geography that results from our merger, and the benefits that come from increased scale and our combined experience, we”™ll be able to readily meet their needs.”

David Belluck, chairman of Alteris and general partner with Riverside Partners, based in Boston, who is the controlling investor of Alteris, will join Real Goods Solar”™s board.

Yearsley was very active in finalizing terms of the Alteris transaction. Yearsley is also an early investor of a fund that develops utility grade biomass electric generation plants in North America. He said the merger is the combination of a widely recognized and reputable consumer brand with a premier commercial customer base.

The merger is subject to approval by Real Goods Solar”™s shareholders and is expected to close in the third quarter of 2011. Gaiam Inc., the creator of Real Goods Solar that holds a majority of Real Goods Solar”™s voting securities, has indicated that it will vote in favor of the merger. Alteris”™ financial results have begun to be consolidated with Real Goods.