WindPower Innovations, Inc. (PINKSHEETS: WPNV) announced today that the Company and Gearstar Performance Transmissions, Inc. of Akron, Ohio, have signed a letter of intent which provides the framework for the acquisition of Gearstar by WindPower Innovations in a share exchange. The exact details of the exchange and the amount of shares to be exchanged will be determined after completion of final due diligence of Gearstar.
Gearstar is a well-known rebuilder of high performance, high quality gearboxes and vehicle transmissions, with annual revenue of approximately $1.2 million per year. Gearstar has excess capacity in its facilities where it can rebuild the gearboxes that are at the heart of WindPower Innovations’ wind turbines. By being acquired by WindPower, Gear Star will gain access to additional capital, liquidity for its shareholders by being public and additional markets in the wind energy sector exclusively with and through WindPower.
John Myers, CEO of WindPower Innovations, commented, “The acquisition of Gearstar Performance, will allow WindPower to vertically integrate a portion of its products by rebuilding the gearboxes “in house.” This will lower our costs, improve our standard of high quality and allow us to be more competitive in the renewable energy market place.”
Zach Farah, CEO of Gearstar Performance Transmissions, stated, “Gearstar is excited for the opportunity to begin rebuilding the gearboxes for the enhanced products and services that WindPower provides. This will add a new dimension to our business and utilize our excess capacity.”
WindPower will now diligently seek to complete the acquisition of Gearstar and begin a larger scale marketing effort to engage more customers under the WindPower brand while seeking growing pool sales and maintenance under the Cameo Group brands.
This acquisition fits into WindPower’s continued acquisition strategy to acquire synergistic companies that management believes can enhance shareholder value through increased revenue, lower costs and better branding.
Gearstar Transmissions builds high performance, high quality transmissions and gear boxes for many applications and vehicles built by all major manufacturers. At a time when very few companies are offering anything other than off-the-shelf transmissions from large manufacturers, Gearstar offers customers the best in high performance transmissions tailored to the individual needs of each customer. Gearstar employs the top transmission mechanics in the industry and rebuilds high performance automatic transmissions and gearboxes to the specifications of the engines, horsepower and torque output, gear ratio and the applications that they serve. To maintain consistency and quality during the building process, each transmission or gearbox is handled by a single mechanic. We approach each transmission or gearbox as if it was going into our own personal car. For more information, go to our website at www.gearstar.net.
WindPower Innovations, Inc. is an acquirer of fundamentally sound sustainable technology, and renewable energy companies or those companies that benefit from “going green” which are market- accepted, scalable and demonstrate a quantifiable value proposition. Our focus is on organizations that have strong market presence, brand awareness and talented and dedicated management teams with the potential to achieve exceptional performance over time. By being acquired by WindPower these companies get access to our operational support, management approach and ability to access financial markets for operational and growth capital. By focusing on “sustainable and renewable” companies such as wind, solar, and companies utilizing sustainable technologies to make everyday products more affordable, more convenient and that may lower the “carbon footprint” we believe that we can create value for humanity at large and enhance shareholder value. WindPower Innovations has two subsidiaries; WindPower solutions, Inc. which remanufactures wind power turbines for operators across the U.S., and R.I.G. Construction Inc. which markets under the “Cameo Brands” — Cameo Pools, Cameo Landscaping and Cameo Solar. For more information go to our websites at: www.wpienergy.com, www.cameopools.com