SunPower Is Set To Buy SunRay Renewable Energy For $277M

SunPower Corp. announced that it has signed a definitive agreement to acquire SunRay Renewable Energy,   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 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 employees.

The total consideration for the acquisition is approximately $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. SunPower has sufficient cash to close the transaction and does not intend to raise equity capital to finance the acquisition.

us.sunpowercorp.com