SunPower, the California-based solar cell manufacturer, has signed a definitive agreement to acquire French solar power firm Tenesol SA.
SunPower will pay $165.4 million in cash.
Tenesol is a wholly-owned subsidiary of Total SA.Concurrently with the closing of the acquisition, Total has agreed to purchase 18.6 million shares of SunPower common stock in a private placement at $8.80 per share. After the sale of Tenesol, Total will own approximately 66% of SunPower's common shares.
Tenesol manufactures and installs solar energy systems in Europe and is a major supplier in the French market for large industrial and commercial photovoltaic rooftop solutions.
The company has installed more than 15,000 solar systems worldwide totaling 500 megawatts (MW) dc. With a significant footprint in Europe, and as being a leader in the off-grid emerging market sector, Tenesol recorded revenue of EUR 240 million in 2010 and expects to record revenue of approximately EUR 200 million in 2011.
Post acquisition, the combined company will have deployed more than 2,500 MW dc globally.
"Our acquisition of Tenesol is another step toward differentiating ourselves in the competitive solar market, further expanding our downstream presence and benefiting from the strong backing of Total," said Tom Werner, SunPower president and CEO.
"Combining the activities of Tenesol with SunPower is a step forward in Total's strategy to become a world player in the promising solar industry," said Philippe Boisseau, president, Total Gas and Power Division.
Total and SunPower also reached new agreements that further strengthen SunPower's balance sheet and liquidity position. In addition, Total has agreed to pursue negotiations for several additional agreements with SunPower related to directly investing in SunPower's research and development, developing the first initial, full-scale, commercial concentrator power plant with the SunPower C7 Tracker, and purchasing10 MW of SunPower products for the development of projects worldwide.
www.SunPowercorp.com.