TotalEnergies, a French oil and gas major, agreed to acquire the Commercial & Industrial Solutions (CIS) business of SunPower for $250 million.
TotalEnergies said that this acquisition would allow it to extend its distributed generation (DG) business footprint to the US and develop more than 100 MW of additional capacity per year in the country. The French group’s current DG business includes 500 MW of assets in operation worldwide. “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 of Renewables for TotalEnergies.
“TotalEnergies is the ideal partner for our CIS business to take advantage of the growing commercial market and opportunities like community solar and front-of-meter storage,” said Peter Faricy, CEO of SunPower.
“The sale enables SunPower to focus on creating a superior residential experience, increase our investment in product and digital innovation, and reach more homeowners. The enhanced strategic clarity created by this transaction will help SunPower lead the industry and deliver maximum value to our investors, partners, and customers,” Peter Faricy added.
According to the announcement, the deal value includes $60 million of earn-out. The transaction is scheduled to close early in the second quarter and will not reduce TotalEnergies’ 50.83% stake in SunPower, TotalEnergies said. In October 2021, distributed generation storage and energy services provider SunPower acquired residential solar provider Blue Raven Solar. The acquisition was made for a cash consideration of up to $165 million. The acquisition allowed SunPower to serve more customers in underpenetrated areas, including the Northwest and Mid-Atlantic regions.
According to Mercom’s recently published Q4 2021 solar funding and M&A report, M&A activity in the solar sector doubled with 126 transactions in 2021 – the highest number of deals ever recorded. Most of the transactions involved Solar Downstream companies.