SOURCE: Eco-Shift Power Corp.

Eco-Shift Power Corp.

September 29, 2014 07:00 ET

Eco-Shift Power Corp (OTCBB: ECOP) Announces Letter of Intent to Acquire Sun Industries, One of North America's Leading Lighting Retrofit Companies

CAMBRIDGE, ON--(Marketwired - September 29, 2014) - Eco-Shift Power Corp (OTCBB: ECOP) - Eco-Shift (ECOP) has entered into a Letter of Intent (LOI) to acquire Sun & Sun Industries Inc. dba Sun Industries (Sun), one of the largest and most experienced lighting retrofit specialists in North America. This strategic acquisition will deliver significant shareholder value by combining Sun's US market share and growth with ECOP's proprietary LED high bay fixture and wireless light management system that is Demand Response ready. With this acquisition ECOP will gain a growing $10M annual revenue stream from Sun and an OEM distribution channel into a high-growth multi-billion dollar market.

Headquartered in Santa Ana, California, Sun Industries is one of the leading lighting retrofit companies in North America. With 20 plus years of experience, Sun Industries has completed over 700 projects in 30 States. Sun is a specialist in complex large-scale ($250k+) single site and program based multiple site lighting retrofit projects servicing the MUSH (municipal, university, schools, hospitals) marketplace and large scale commercial/industrial clients. This acquisition aligns with ECOP's business plan to move into key US markets as both a lighting retrofit specialist and OEM manufacturer of LED technologies and wireless control systems. The acquisition will benefit shareholders of both ECOP and Sun given the opportunities for growth as a combined entity.

Acquisition to drive increasing revenues due to strategic alignment

The strategic acquisition will provide a revenue growth multiplier by combining the strategic advantages of each company.

  • Sun provides an instant OEM Distribution Channel in California and other large US markets for ECOP's proprietary technologies. By utilizing Sun's trusted reputation and well established network with national distributors there will be a quicker penetration and scale-up of revenues from ECOP's proprietary technologies.
  • As a manufacturer, ECOP will be able to earn better margins and increase the profitability of Sun's successful lighting retrofit business. 
  • ECOP will be able to generate ongoing revenue from Sun's core lighting retrofit business with its Radium - Wireless Light Management system which will operate under a Software-as-a-Service (SaaS) model for providing Demand Management and Demand Response services in addition to wireless lighting controls.
  • ECOP's access to public market financing will reduce growth barriers associated with Sun's bonding capacity for MUSH contracts and the associated $2 Billion in California's Proposition 39 funding. This aspect alone is anticipated to add $3-5M to Sun's pre-acquisition forecasted 2015 revenue of $13.7M.
  • With 20 years of experience in key US markets, Sun will provide valuable insights for the R&D of new energy management technologies.
  • ECOP's leading edge proprietary technology aligns perfectly with California Regulatory changes (Title 24) that require lighting control systems that are demand response ready. 
  • Sun's abilities to manage very large and complex lighting retrofit projects will expand ECOP's reach within Ontario and the rest of Canada.

"We are ecstatic about the opportunity to merge the ECOP and Sun teams to take the lighting and controls industry by storm!" exclaimed CEO Gib Wood. "We have been preparing ECOP's corporate foundation for a strategic acquisition for the past year and Sun Industries is a perfect fit with our plans for US expansion and rapid growth as a lighting retrofit specialist and manufacturer," added Wood. "We were sold on Sun Industries the moment we sat down with their leadership team to discuss their amazing track record and detailed approach to managing margins with large and complex projects. Sun's ability to consistently bid and win California's highly competitive Proposition 39 Energy Retrofit Projects is a testament to their expertise and reputation as one of North America's preeminent lighting retrofit experts. This is a clear indication that Sun Industries truly is at the top of their field and validates what our team has been discovering throughout our rigorous due diligence process," states Wood.

According to Duncan Frederick, Managing Director of Sun Industries, "Sun has been a family business since its inception in 1991 and has provided leading edge energy efficient lighting retrofits for its local, regional and National clients over the past 20 plus years. However, with today's unique confluence of new LED products, Cloud based Information Technology, unprecedented incentives and regulatory mandates, energy efficiency solutions are no longer about a single conservation measure. Now more than ever facility owner operators, utilities and regulators are looking for comprehensive solutions that not only address efficiency opportunities, but provide operators with real time control over energy use to maximize savings and tenant comfort," asserts Frederick. "Over the past 2 years Sun has recognized this trend in the efficiency marketplace and has been looking for the right partner with which to provide this expanded service offering. With Eco-Shift's proprietary demand response control technology and a shared vision to expand its controls offering across the full spectrum of ECMs (Energy Conservation Measures), the Sun team is very excited about our collective ability to meet this shifting market demand and expand our value with existing and new clients."

About Sun Industries

Sun was founded in 1991 by Lynda Sun as the Nation's first Woman Minority Owned Business Enterprise (WMBE) specializing in energy efficient lighting retrofits. Ms. Sun's guiding principal was and continues to be about providing products and services that make a difference in this world. By saving clients' money while reducing the world's dependence on nonrenewable energy sources, Ms. Sun and her company are responsible for providing cumulative energy savings of over $1 Billion.

Over the past 23 years, Sun has grown to become one of the most respected and successful energy efficiency lighting retrofit companies in the US servicing public sector MUSH (Municipality, University, Schools and Hospitals) and commercial and industrial private sector markets. Sun's clients include Johnson Controls, Siemens Building Technologies, McKinstry, Noresco, Ameresco, Sempra, SCE (Southern California Edison), AAFES (Army and Air Force Exchange Service), JC Penny's, US BankCorp, Colorado Dept. of Transportation and the FAA (Federal Aviation Administration) among many others. With a resume of over seven hundred (700) projects across all public sector and most commercial markets and over $175 Million in cumulative project revenues and over $500 Million in facilities savings, Sun presents the most extensive and diversified design build lighting retrofit project experience in the market place.

Summary of ECOP's Proprietary Technologies

ECOP's LED High bay:

ECOP's LED high bay is the first LED technology with a price-point low enough to compete directly with the legacy electronic ballast and induction technologies. With the competitive pricing of ECOP's LED high bay, the payback is very fast given the higher efficiency and near-zero maintenance costs. The new LED high bay is also seamlessly compatible with ECOPs Wireless Light Management System, which generates additional saving with scheduling functions and automation that adjusts light levels automatically based on motion detection, daylight levels and even external inputs such as electricity market pricing. 

ECOP's Radium Light Management System

The Radium Light Management System utilizes a modern web-based user interface that is accessible by any web browser via desktop, laptop, tablet or smartphone. Radium provides clients with complete control over their lighting infrastructure with the ability to automatically dim lights to more suitable levels, or create pre-programmed schedules based on existing operating hours to cut back on consumption when areas of the facility are unoccupied. The system is Demand Response ready and will also allow users to schedule their lights to dim to appropriate levels automatically during times of estimated peak demand and high electricity costs. ECOP is using an open protocol (ZigBee) so that other energy using technologies (HVAC, compressors, plug-load) can be connected to the system in the future. 

ECOP Lighting Solutions and Energy Management serves a client roster including Mattel, ThyssenKrupp, and Parmalat. With a foundation in new-era LED lighting and wireless and web-enabled technologies, ECOP is transitioning clients' decision making from old, fixed technology to the new information age.

About Eco-Shift Power

Headquartered in Cambridge, ON, Eco-Shift Power Corp. (ECOP) develops best-in-class commercial/industrial lighting products, wireless energy management technologies and solutions implementation. As an emerging technology smart building energy management facilitator, ECOP procures, assembles, sells and distributes high-efficiency lighting products, along with other integrated energy management products such as online monitoring and verification reporting tools, direct load controls, activity monetization instruments, and demand response. All are delivered via Software-as-a-Service (SaaS).

Core ECOP competencies include LED expertise, microprocessor/Transmitter/wireless capability -- with IP addressability creating an intelligent light and a sustainable management service platform that includes five areas for client revenue generation or costs savings:

  • reduce load during peak pricing
  • manage demand response programs
  • manageability of fixtures to reduce load
  • security
  • maintenance and management

Learn more at http://eco-shiftpower.com/

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the offered shares or any other securities, nor shall there be any sale of such shares or any other securities in any province or state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

Contact Information

  • For more information, contact
    Jim Hughes
    jughes@eco-shiftpower.com
    519 650-9506

    Eco-Shift Power Corp.,
    1090 Fountain St N
    Cambridge ON
    N5E 1A3
    Canada