Firm Overview
Compass Group Completes Sale of Sunpro Solar to ADT
Compass Group Equity Partners, a St. Louis-based private equity firm, announced today that they completed the sale of their portfolio company Sunpro Solar (“Sunpro”) to ADT Inc. (NYSE: ADT). The transaction was announced in early November and was awaiting regulatory approval for the last 30 days. The deal included $160 million in cash and 77.8 million shares of ADT stock, making the transaction value approximately $825M at the current share price. Sunpro management team and Founder Marc Jones will now lead ADT Solar as the company expands to additional markets across the U.S.
“Sunpro caught our attention back in 2019 when researching the renewable energy market,” said Compass Group Managing Partner, John Huhn. “We identified growth opportunities, shared the results-driven approach of the management team, and connected immediately with their people-first company culture.” Compass Group led an investment team through the acquisition in October of 2020. Investors included MGG Investment Group, TGP Investments, and Millstone Capital Advisors.
“The closing of this transaction and the introduction of ADT Solar unlocks our ability to respond to customer desire for sustainable energy solutions they can use independently or combine with ADT’s smart security systems for a safer, smarter, and more sustainable home or business,” said Jim DeVries, ADT President and Chief Executive Officer. “We are especially pleased to have completed the transaction quickly, which allows us to swiftly begin to realize the great benefits of this combination for our customers, employees, and shareholders.”
Sunpro Founder Marc Jones, now ADT’s Executive Vice President, Solar said, “We have a winning team and strategy in place with ADT Solar, and I expect us to continue our growth trajectory, by serving more customers in more places with an unbeatable and complementary package of smart home security plus renewable energy and energy storage solutions,” Jones said. “I look forward to leading ADT Solar for years to come as we build the business into the true rooftop solar industry leader.”
Founded in 2008, Sunpro Solar was already a leading provider of rooftop solar systems in the United States. Sunpro markets, designs, sells, installs, and maintains solar power systems on residential and commercial properties through their 3,600-person, full-time workforce of solar energy professionals with 56 locations in 22 states. ADT adds nearly 4 million customers in Sunpro’s market territory.
Transaction Advisors
Citi served as financial advisor to ADT, while Morgan, with Lewis & Bockius served as legal counsel. Deutsche Bank Securities served as the exclusive financial advisor to Sunpro, with Vinson & Elkins serving as their legal counsel.
