International trading house Itochu Corporation (8801.T) on Monday announced an acquisition that gives the company roughly 30% market share for residential solar power systems in the U.S.
The group has agreed to acquire an 85% stake in SolarNet LLC, a large solar power systems provider that includes DC Power Systems and Stellar Energy Solutions. Financial terms were not disclosed.
Itochu acquired California-based wholesale distributor and systems integrator Solar Depot in 2007.
With the acquisition of SolarNet, the combined market share of Solar Depot and DC Power will give Itochu collectively the largest solar distribution network in the US. SolarNet will be operated as a majority-owned subsidiary of Itochu, beginning immediately.
Itochu also supplies manufacturing equipment to solar module manufacturers globally and is involved in the systems integration, financing and development of solar energy projects in various countries.
Harutoshi Okita, Senior Vice President, Itochu International Inc. "This acquisition expands our presence in the US distribution market and extends our capabilities with regard to the development of large-scale solar systems."
The acquisition also positions Itochu as a leading integrator of commercial-scale solar power systems, with a project pipeline of over 80MW across the US.
"SolarNet’s partnership with Itochu will give our companies the resources to execute our aggressive business plan and continue to provide outstanding customer service in a rapidly growing business. We are excited to have a partner with such a long-term vision and global reach," said Joseph Marino, President of SolarNet. Mr. Marino will continue with SolarNet after the acquisition as a member of the Board and as Founder.
Itochu Corporation is a global trading company headquartered in Tokyo with annual revenues of more than $28.5 billion in the fiscal year ending March 31, 2008. Itochu Corporation operates over 700 domestic and overseas subsidiaries and affiliates involved in a wide array of industries, including technology, telecommunications, energy, aerospace, electronic machinery, media, textiles, food products, finance, real estate, insurance and logistics services.
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