SunPower Corp. signed a definitive agreement today with TotalEnergies, its majority shareholder, to purchase its Commercial & Industrial Solutions (CIS) business for $250 million, including $60 million of earn-out, subject to regulatory evolution.
TotalEnergies currently holds close to 500MW worldwide in distributed energy generation, and this acquisition will extend that footprint to the US. It will also allow TotalEnergies to develop over 100MW of additional capacity per year.
The sale comes as no surprise as the company announced last November that it would consider divesting the commercial operation, revealing that its C&I projects had contributed an $8 million loss to its third-quarter earnings. SunPower had also previously announced that it would focus on its residential business.
“With this acquisition, TotalEnergies is further investing to grow its distributed generation activity in the U.S. and support its B2B customers in meeting their sustainable development goals. It is a new milestone in our renewable development in the country, where we are targeting 4 gigawatts of solar capacity by 2025”, said Vincent Stoquart, senior vice president Renewables for TotalEnergies. “This will also give SunPower additional resources to focus on the growing residential market.”
“The sale enables SunPower to focus on creating a superior residential experience, increase our investment in product and digital innovation, and reach more homeowners,” said Peter Faricy, CEO of SunPower.
The acquisition has been approved by both companies and is expected to close early Q2, subject to the satisfaction of customary closing conditions. TotalEnergies reports that its majority ownership stake in SunPower will remain at 50.83%.
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