Aldo Teixeira talks about selling the company to Brookfield and expectations for the sector

The news that the photovoltaic equipment distributor Aldo Solar was purchased by a Brookfield private equity fund raised many questions about the supply of products and, mainly, about the value of the sale of the company, which, in 2020 alone, had a turnover of more than R$ 1,6 billion in its business.

In an interview with Canal Solar, Aldo Teixeira, president of Aldo Solar, revealed more details about the operation, clarified information that is circulating in the press and also made a point of reassuring the market. Check out the main excerpts of the conversation.

Canal Solar: The solar market has been buzzing since the beginning of last week to find out how the acquisition of Aldo Solar by the Brookfield group went. I would like you to tell us about this process and what we can expect in the coming months.

Aldo Teixeira: This is a long-term process, and it is important to note that Aldo Solar is a family-owned company from the interior of Brazil. We still open and close this company. So, in order for a Canadian fund with $600 billion in assets under management to choose Aldo, we had to go through a screening process of “big four” companies, auditing our CNPJ for five years. There are hundreds of pieces of information that were audited before we were chosen as a company of interest to Brookfield.

So, for the Brazilian market it is important to understand that this type of business is possible not only for Aldo, but for any other family company with a high level of governance. Family businesses, being within an environment like this, of standards and ethics, that meet all governmental issues, are capable of a transaction with a group of this relevance. Aldo took a very high professional leap this past week.

Aldo had revenues of more than R$1 billion last year and the market is booming. Why sell the company at this time?

In Aldo's view, the sector still continues to grow above three digits and will continue to grow over the next few years. So, thinking about this professional side, the Brazilian market and all the representation that Aldo has with more than 13 thousand resellers and installers throughout Brazil, it was inevitable that there would be an investment from a fund like Brookfield to support the growth that we envision in the short and long term. This was one of the most relevant points in the decision.

With this change, what can integrators and installers expect? Will there be any changes or will they be able to continue counting on Aldo Solar's services?

If any change comes, it comes to improve our market. Nothing changes from what you are used to following. We made an internal communication with our employees, precisely to tell them that the company is now a joint stock company of an international group from Canada and that this brings a very positive impact to Aldo and the market in general, with contributions for the distributed generation sector, power generation and energy matrix.

Now, change? There won't be any. Our business plan for the coming years is already in contract. The only thing that changes is the news that will improve and make life easier for integrators. The digital aspect, platforms and other business possibilities are on our radar and major process improvements lie ahead, because Brookfield has a lot of knowledge and technology and a long-term vision to support the sector.

Is there a prospect for Aldo Solar to operate in the centralized generation market?

Aldo's focus will remain the same as it is today. We will continue to exclusively support those who are and have always been by our side, intermediating sales, carrying out their projects and installations. So, this will definitely not change. I spoke at length with Brookfield, and we are fully aligned that Aldo will not change its way of being; we will continue to support resellers and integrators throughout Brazil.

Regarding centralized solutions, Brookfield has spectacular know-how in this market. It has a company called Elera, which is a leader and is building two important solar parks in Brazil totaling almost 1,5 GW. The suppliers that Aldo has relationships with today, such as Trina and Jinko, are very familiar to Brookfield.

So, if Aldo already had a very high level of negotiation in a very exclusive scenario, with Brookfield this has been multiplied much more, because it brings financial know-how and robustness. Now Aldo has the bankability to support any size of project and meet the needs of our partners.

The integrator will be able to continue knocking on our door, just as it has always done. The arrival of Brookfield only brings more security. The important thing is that Brookfield came to the DG market and arrived strong, letting everyone know that it came to occupy its space.

This transaction was made amid the process of creating the Legal Framework for GD in Brazil. This shows the potential for investments in the solar energy market, especially in distributed generation projects. How do you analyze this transaction taking place at this time of discussion of the bill?

The sector's legal framework is undergoing significant changes, and this may have consequences for the industry, whether better or worse. We believe that Brazil, recognizing the importance of the sector for our sustainable development, will undoubtedly approve a framework that supports solar energy in the long term and enables all Brazilians to seek the benefits of distributed generation.

But, Aldo has plan B and plan C. We have several other types of installations and projects that could, in the most drastic situation that regulations bring, guarantee the operation and continuity of the business, because we already have the zero grid, the storage system, off grid system, water pumping systems for agribusiness and several other applications.

So, what happens is that solar energy in the world is so beneficial to society in general compared to other energy sources that it made Brookfield want to invest in the sector. So, it is here firmly saying: “I am betting on you, I am betting on the market, I am betting on you, Aldo photovoltaic system installers and integrators”. That is how it comes about.

Upon completion of the transaction, you will be CEO of Aldo and have a seat on the company's Board. What can you expect? How will Aldo be managed?

I can confess that one of the things that was part of this decision was family issues. My biggest desire, after 40 years of company, is to provide a little more comfort for the family. So, for the family, this decision was very important, because it puts Ruth (his wife) and my two daughters in a more peaceful situation, where they can enjoy family life a little more and enjoy retirement a little.

And I'm here firmly leading the company, running the day-to-day business as always. So, for the market, and for all integrators, it is a milestone, very important news for the sector, but operationally we are stronger. I will continue to bring you all the greatness you deserve.

Aldo, an article was recently released about the sale price. After all, what was the value of the transaction?

The terms are confidential. What I mean is that the amount is not relevant. The amount the family is putting into their family life is not the case now. It is the result of 40 years of work. The important thing in this transaction is the legacy that will be left for the sector. So, the greatest profit, the greatest certainty, the greatest guarantee that all of you can have is the greatness that this business will remain from now on. We all come out of this operation greater in a medium and long-term vision.

What message do you have for integrators? How do you evaluate the last few days?

These emotional moments were memorable for the family, I received hundreds of messages on WhatsApp, emails and phone calls. There was none of these connections that did not bring great charm, great congratulations on the achievement and for this moment we are going through. I realized, the next day, that if we (the family) had any fears, they were put aside.

The market applauded standing up. Mainly European, Chinese and American suppliers, both in the IT and solar areas. I received this situation with great praise because they realize in a matter of seconds that the key has changed, but it has changed for the better. This is the message I want to leave for all of you. This is the feeling we are experiencing today and the feeling that will last throughout the years.

Watch the full interview