Riot Blockchain Acquires Electrical Equipment Solution Provider Ferrie Franzmann Industries, LLC
Riot Blockchain, Inc. (NASDAQ: RIOT) announced today the acquisition of Ferrie Franzmann Industries, LLC (“ESS Metron”). The total price payable in the deal is approximately $50 million, which includes up to 715,413 shares of Riot common stock and $25 million in cash, which is supported with cash on the balance sheet.
ESS Metron is a market leader with over sixty years of expertise in developing and manufacturing highly specialized electrical equipment solutions, many of which are vital to the successful deployment of Bitcoin mining operations at scale. Riot’s rapid miner installs are aided by acquisition, which reduces the risk of procuring mission-critical infrastructure.
Riot’s competitive position in the electrical supply chain is strengthened by the acquisition, since ESS Metron is also a major supplier to a number of third-party customers. The transaction is valued at about $50 million, with $25 million paid in cash and the remaining distributed in the form of up to 715,413 shares of Riot’s ordinary stock.
The purchase of ESS Metron, a major supplier to Riot’s Whinstone plant, complements Riot’s continuing infrastructure development to 700 MW. ESS Metron delivers highly designed, unique product options that are mission-critical to Bitcoin mining infrastructure and considerably boosts Riot’s internal engineering skills. Riot’s unique immersion-cooling technology for its previously announced 200 MW immersion-cooling expansion project relied heavily on ESS Metron’s technical expertise.
“The successful purchase of ESS Metron is yet another milestone in establishing Riot as a leader in Bitcoin mining,” stated Riot CEO Jason Les. “Riot’s strategic position throughout the electrical supply chain has been greatly strengthened as a result of ESS Metron’s existing partnerships with top electrical suppliers worldwide.”
In addition, Riot will continue its rapid development as a result of internalising ESS Metron’s technical and industrial knowledge. “We are delighted to welcome the outstanding ESS Metron team to the Riot family, and we look forward to building our future together.”
“We are pleased to join Riot Blockchain to continue the expansion of ESS Metron’s company,” stated Stephen Howell, recently promoted CEO of ESS Metron.
“We look forward to providing best-in-class service to our expanding client base and actively engaging with Riot in its continued growth initiatives.”
ESS Metron will continue to function as an autonomous subsidiary of Riot, with the full personnel team remaining in place. Riot and ESS Metron look forward to continue their decades-long partnerships with ESS Metron’s customers and suppliers. ESS Metron is headquartered in Denver, Colorado, and operates from 121,000 square feet of space. Long-term leasing arrangements govern the facilities. Riot’s sole financial adviser was XMS Capital Partners, LLC, and its legal advisor was Sidley Austin LLP. ESS Metron’s legal counsel was Davis Graham & Stubbs LLP.