MEMC Electronic Materials and its solar subsidiary, SunEdison, revealed that they had completed the acquisition of Fotowatio Renewable Ventures, Inc. (FRV US), the US subsidiary of Fotowatio Renewable Ventures. MEMC paid a the disclosed consideration of US$112 million plus repayment of nearly US$19 million in intercompany loans and capital contributions. An additional consideration of up to US$103.6 million may be paid if FRV US reaches specified performance targets.
“We are pleased to complete this transaction and welcome the experienced FRV U.S. team to our company. This complementary acquisition will help us secure a leading position in the U.S. utility market,” said Carlos Domenech, president of SunEdison and executive vice president of MEMC. “The acquired capabilities and portfolio of projects with leading utilities adds meaningful value to our operations. Together, with our proven capabilities, we will continue lowering the cost of solar deployments through innovation and technology advancements, while providing economic solar solutions to our customers.”
FRV US’s solar portfolio comprises 42MW in operation within the US with 28 projects in different development stages. Through the acquisition, SunEdison can potentially add up to 1.4GW of solar projects to its US portfolio.
The companies advised that the FRV US staff will remain on site in northern California and will report to SunEdison. Additional details surrounding the transaction of the acquisition will be released in November when MEMC hosts its third quarter earning conference call.