Koch Engineered Solutions LLC (KES), a unit of Koch Industries Inc. (Koch), announced the acquisition of DEPCOM Power Inc. (DEPCOM). DEPCOM is a leading engineering, procurement and construction (EPC) firm that builds utility-scale solar power plants and manages ongoing operations, maintenance and refurbishment services.
"The acquisition of DEPCOM is a milestone for KES, adding expertise in renewable electricity generation to our extensive knowledge and capability set provided to our global client base," said Don Brown, vice president of business development at KES. "DEPCOM has recorded impressive growth over the last few years, and this acquisition reflects our confidence that the company will be a major player in the future of this industry. We look forward to supporting developers and operators of renewable generation facilities in providing end users with increased access to cost-effective and reliable energy."
DEPCOM is one of the largest solar EPCs in the U.S., successfully designing, engineering, constructing and commissioning utility-scale solar projects. DEPCOM differentiates itself through customer-centric solutions, a full-service model, and in-house expertise and tools for solar development, optimization and operations. DEPCOM's portfolio includes approximately 5GW of projects representing completed, in-construction and preconstruction stages across the U.S.
"This acquisition is a major development for KES, as DEPCOM will enable our entry into the fast-growing renewables market, reinforcing our commitment to the electrical infrastructure market segment," added Dave Dotson, president of KES. "The DEPCOM acquisition is consistent with KES's vision to deliver innovative, mutually beneficial technical and service solutions for industrial value chains while simultaneously transforming our business to improve and create new industry platforms. Through our complementary capabilities, we can offer greater opportunities for our customers who are seeking solutions in this increasingly important and competitive space."
The renewable electricity generation sector continues to grow significantly, with companies and consumers across the globe increasingly using this cost-effective energy generation option in addition to traditional energy resources. The U.S. Energy Information Administration (EIA) estimates that solar electricity generation will grow from 3% of the U.S. generation mix in 2020 to 14% by 2035.
Key elements driving KES's entry into the renewables space are the cost-competitiveness of utility–scale solar on an unsubsidized basis, causing it to become an increasingly significant part of the generation mix over time; growing energy usage among businesses and households; and continued consumer preference for renewable electricity.
Johnnie Taul, CEO of DEPCOM, said: "By joining KES, we are combining forces and shared values, and leveraging robust capabilities and knowledge centers that will accelerate our ability to enhance our existing services and expand our offerings into new service lines and markets. Together, we will further our mission to be the solutions provider of choice for our customers in the energy industry."
Stinson LLP served as legal advisor to KES on the transaction, while Greenberg Traurig LLP served as legal advisor to DEPCOM.