As its parent company looks to focus on its LED lighting business, Carmanah Technologies Corp. hopes to find a buyer for its growing off-grid power division.
Carmanah, a public company traded on the Toronto Stock Exchange (CMH), announced the move last week in a release.
Power Division Manager Mike Stephens said the prospective deal was one indicator of the success the Division has seen in recent years, but also would allow Carmanah to focus its LED business.
“(The Power Division) has had tremendous growth over the past five years, and we’ve reached a point where it made sense for Carmanah to unplug us from their business portfolio,” Stephens said.
At the same time, Carmanah would look to grow its LED lighting solutions, which Stephens said do not overlap with the recreation industry.
“The parent company is looking to align its businesses more strategically with LED lighting solutions,” he said. “(The Power Division) is more of an off-grid power solution company and have operated quite independently under the umbrella of Carmanah.
“What it would allow us to do is to be more focused on the business we do.”
It is not yet known what the company might fetch from a potential buyer, but, given the recent success of the Power Division, Stephens did not foresee a future ownership change causing major changes to the Power Division’s business model.
“We suspect that, in time, how this will play out is that we’ll be picked up by a buyer who would be very interested in the continual growth of our business,” he said.