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Sharp to acquire solar developer
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Thursday, September 23, 2010
Expanding its reach in photovoltaics, Sharp Corp plans to acquire Recurrent Energy, a solar project developer and generating company with a 2 GW pipeline, in an agreement that calls for the company to pay up to $305 million in cash at closing.
The buy gives Japan-based Sharp a bigger slice of the solar market, in which it has been working for about 50 years. The company in March started mass production at its Sakai City plant, one of the world's largest solar cell production facilities for thin-film solar cells. In August, Sharp and its partners STMicroelectroncs and renewable power company Enel Green Power signed a $198 million financing agreement as they moved forward with a planned photovoltaic panel factory in Italy that is expected to have initial production capacity equivalent to 160 MW per year.
"We are excited to have reached a definitive agreement for Sharp to acquire Recurrent Energy, a leading solar project developer and generating company with a 2 GW pipeline. It is essential for Sharp to function as a developer in the photovoltaic field, in order to further expand its business in this area," Toshishige Hamano, Sharp's executive vice president responsible for overseas business, said in a statement. "With Recurrent Energy's know-how as a developer, Sharp aims to become a total solutions company in the photovoltaic field, extending from developing and producing solar cells and modules to developing and marketing power generation plants."
The terms of the agreement call for Sharp to pay up to $305 million in cash at closing, subject to balance sheet adjustments, to purchase a 100% stake from Recurrent Energy shareholders. San Francisco-based Recurrent Energy is a Hudson Clean Energy Partners portfolio company. Other shareholders include Mohr Davidow Ventures.
The acquisition is expected to close by year's end. At that time, Recurrent Energy will retain its name and will operate as a subsidiary of Sharp. Arno Harris, CEO of Recurrent Energy, will retain his title and continue to lead the company following the acquisition. Recurrent Energy's executive team and employees will also continue with the company, Sharp said.
"We're thrilled to reach this agreement with Sharp, a company known for its global leadership in solar technology," Harris said in the statement. "Sharp's support will help us to accelerate our growth and further cement Recurrent Energy's goal to build the leading global solar generating company."
Recurrent Energy has more than 330 MW of contracted distributed-scale solar power projects including 170 MW with the Ontario Power Authority, 60 MW with the Sacramento Municipal Utility District (SMUD), and 50 MW with Southern California Edison. It has further announced projects and joint development agreements in Europe and the Middle East.
By: DocMemory
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