Juhl Wind Inc., a community-based wind power development and management company, today announced it has completed its acquisition of the 10.2 megawatt, Woodstock Hills wind farm located near the company’s headquarters in Woodstock, Minn.
Juhl originally developed the Woodstock Hills wind farm and put it into service in 1999 with two companies serving as institutional investor partners. Juhl paid $400,000 to acquire a controlling, 99.9 percent stake alongside the .1 percent local owner, which in this case is an entity controlled by company CEO Dan Juhl.
“Our acquisition of the Woodstock Hills wind farm is the first step in a very important element of our long term business strategy,” Juhl stated in the press release. ”Our acquisition of existing wind farms will bring assets to our balance sheet, along with long-term, reliable revenue streams. We believe there is a large number of existing wind farms for us to consider and we are confident we have a unique skill set to properly evaluate, acquire, own and operate these assets.”
The company said it expects the wind farm to continue to generate revenue of approximately $1.2 million per year. This will give the company leverage to increase bottom-line revenue on a consistent basis.
“Combining wind farm assets with their associated revenue streams will help us build baseline revenue that we can count on year over year,” John Mitola, president of Juhl Wind stated. ”We recently described this strategy to our investors in our annual 10K conference call and we are proud to have executed on this first transaction. Given that this first wind farm should bring us over $1 million per year in revenue, observers can clearly see that our base revenue can grow steadily with additional wind farm acquisitions.”
Mitola also said the company executed its acquisition strategy upon reaching a level of growth that could sustain the deal and contribute to solid revenues.
“As we explained on our conference call, we felt that we were finally at a point in our growth cycle where it was appropriate to begin asset acquisitions, given the growing cash position on our balance sheet,” continued Mitola. ”We plan to balance our ongoing development activity with wind farm acquisitions, along with our long term Operations and Maintenance services. All of these elements will help us build a company with solid base revenues topped off by large steps from time to time due to development and construction revenue.”
For more information visit www.juhlwind.com