Solar panel manufacturer SunPower Corp. (Nasdaq: SPWRA, SPWRB) today announced that it has signed an agreement to acquire SunRay Renewable Energy, a European solar power plant developer that also has offices in the Middle East.
SunPower (www.sunpowercorp.com) will pay a total consideration of $277 million to acquire SunRay from its shareholders, which includes its management and Denham Capital. Upon closing the transaction, SunPower will acquire a project pipeline of solar photovoltaic (PV) projects totaling more than 1,200 megawatts (MW) in Italy, France, Israel, Spain, the United Kingdom and Greece. The pipeline consists of projects in various stages of development. SunRay’s power plant development and project finance team consists of approximately 70 solar jobs.
SunPower’s move into plant development, follows similar moves by First Solar (Nasdaq: FSLR) and more recently solar wafer company MEMC (NYSE: WFR), as these companies look to assure downstream paths for their products to reach the market.
The deal will include $235 million in cash and $42 million in a letter of credit and promissory notes. SunPower said it has sufficient cash to close the transaction and does not intend to raise equity capital to finance the acquisition. The company will provide specific financial guidance regarding the positive impacts of the transaction during its fourth quarter and fiscal year 2009 earnings conference call in March. The parties anticipate closing the transaction, which is subject to customary closing conditions, in the first half of 2010.
SunRay received the European Solar Deal of the Year award today from Project Finance magazine for the largest solar PV power plant financed in 2009. The 24-MW Montalto power plant in Italy began the company’s relationship with SunPower.
"SunRay has a strong pipeline in Italy, with several power plants already permitted for delivery in 2010," said Gian Maria Ferrero, vice president of SunPower’s Europe, Middle East and Africa utilities and power plants business unit. "Italy has demonstrated sustainable, strong growth in both rooftop and ground-mounted solar systems, bringing new jobs to the market and private investment into new power resources without the need for major new transmission investment. The growth of the Italian market has validated our prior acquisition of Solar Solutions, now SunPower Italia. SunPower and SunRay will seek to build on our success throughout Southern Europe and into the Middle East and Africa as demand for new power resources increases."
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