San Jose, Calif., February 11, 2010 – SunPower Corp. signed an agreement to acquire SunRay Renewable Energy, a European solar power plant developer with offices in Europe and the Middle East, including a principal project office in Rome.
SunPower will 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 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 abvout 70 employees.
The total consideration for the acquisition is about $277 million, including $235 million in cash and $42 million in a letter of credit and promissory notes.
SunPower 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.
J.P. Morgan Securities Inc. is acting as exclusive financial advisor to SunPower with regard to this transaction and provided a fairness opinion regarding the acquisition to its board of directors.
Founded in 1985, SunPower Corp. designs, manufactures and delivers solar technology for residential, business, government and utility customers. With headquarters in San Jose, Calif., SunPower has offices in North America, Europe, Australia and Asia.
SunRay Renewable Energy is an independent solar power producer with skills across the photovoltaic project development value chain. It focuses on utility-scale projects in Southern European countries, using a community-based development model to ensure that its plants are adapted to local community needs.
SunRay has a strategic partnership with Denham Capital, a global private equity firm, to develop utility-scale solar projects. SunRay has offices in Malta, Italy, Greece, France, Spain, Israel and the United Kingdom.