SunPower acquires European solar energy firm SunRay for $277 million
12 Feb 2010
US solar panel maker SunPower Corporation (SunPower) yesterday agreed to acquire SunRay Renewable Energy (SunRay), a leading European solar power firm for approximately $277 million, aiming at expanding its activities in Europe and the Middle East.
SunPower will acquire SunRay from its shareholders, which include its management and Denham Capital, a leading global private equity firm, for $235 million in cash and $42 million in a letter of credit and promissory notes.
The transaction is expected to close in the first half of 2010, subject to customary and regulatory approvals.
SunPower said that the acquisition will be funded using the company's internal resources. Specific financial guidelines regarding the impacts of the acquisition of SunRay will be presented in March, during the company's fourth quarter earnings conference.
The transaction will enable SunPower to acquire a project pipeline of solar photovoltaic projects totalling over 1,200 MW of power in southern European countries and Israel. The projects are in various stages of development and about 70 SunRay employees are associated with their financing and implementation.
Both the companies have worked together on several solar energy projects including the large 24-MW power plant Montalto in Italy.
