Global energy company TotalEnergies has signed a definitive agreement to acquire SunPower’s commercial and industrial (C&I) solutions business for $250 million, including $60 million of earn-out.
The acquisition will help TotalEnergies develop its distributed generation business, accounting for about 500 MW in operation worldwide. It will allow the company to extend its distributed generation business footprint to the United States and develop over 100 MW of additional capacity annually.
The transaction will be closed in Q2 and is not expected to reduce TotalEnergies’ majority ownership stake of 50.83% in SunPower.
With this acquisition, the company is eyeing 4 GW of solar capacity by 2025 in the U.S.
Following the sale of its C&I business, SunPower will focus on its high-growth residential business, offering a growing ecosystem of innovative products and services.
Peter Faricy, Chief Executive Officer of SunPower, said, “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 consumers.”
In October 2021, SunPower acquired residential solar provider Blue Raven Solar for a cash consideration of $165 million.
Mercom had earlier reported that TotalEnergies and e-commerce giant Amazon announced a strategic collaboration through which TotalEnergies would supply 100% renewable energy for Amazon’s operations. The companies signed a power purchase agreement through which TotalEnergies would supply 474 MW of renewable energy for Amazon’s operation in Europe and the U.S.
According to Mercom’s Q4 2021 Solar Funding and M&A Report, mergers and acquisition (M&A) activity in the solar sector doubled with a record of 126 transactions in 2021. Most of the transactions involved solar downstream companies.