California, United States [RenewableEnergyWorld.com] SunPower Corp. has signed a definitive agreement to acquire SunRay Renewable Energy, a European solar power plant developer with offices in Europe and the Middle East. 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 megawatts (MW) in Italy, France, Israel, Spain, the United Kingdom and Greece.
“SunRay has a proven track record of developing bankable solar power plants in a complex environment,” said Howard Wenger, president of SunPower’s utilities and power plants business group. “This acquisition is consistent with our long-term company strategy to develop a strong brand and complementary channels to market. SunRay’s exceptional team and pipeline will add to our significant internal investment in North American power plant development. It also complements our European engineering, procurement and construction business that serves a broad range of development partners.”
The total consideration for the acquisition is approximately US $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 pipeline consists of projects in various stages of development. SunRay’s power plant development and project finance team consists of approximately 70 employees.
“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.”